Sugar syrup having 78.2% sugar content emerged as an ...

Sugar Syrup Sweetens Biscuits, but Taxman Bites: Manufacturing Process Yields Excisable Byproduct.

December 27, 2024

Case Laws     Central Excise     AT

Sugar syrup having 78.2% sugar content emerged as an intermediary product during biscuit manufacturing, an exempted final product. CESTAT held sugar syrup was marketable and excisable, not covered under exemption for inputs used in exempted final products. However, as issue related to law interpretation, extended period of limitation was set aside, limiting demand to normal period. No penalty was imposed. Revenue's appeal was partly allowed, confirming sugar syrup's excisability but restricting demand to normal limitation period.

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