TMI Blog2014 (8) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... Nevertheless, when a statement like this is given and when the duty is being demanded on the ground that appellant was not eligible for the benefit of exemption Notification No. 67/1995-CE, it was the duty of the officer to question Shri Mohananand verify the records and ensure that records have been maintained or not maintained and facts are brought out correctly. Once the CENVAT Credit itself is not taken, in respect of inputs utilized for exempted goods totally, and if this fact is coming out from the records, naturally there would be no need to maintain separate records since the very fact that credit has not been availed would be sufficient instead of making further queries and confirming the facts. Straight away proceedings have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work basis bearing the brand name of Britannia falling under Chapter Heading 1905 31 00 of the Tariff. The appellants hold Central Excise Registration No. AACCG5331MXM001. The appellants started their commercial production in March 2007 and started manufacturing the goods as a job worker of Britannia in terms of agreement dated 21.12.2006 entered into between the parties. In terms of the agreement, Britannia supplies the various duty paid raw materials to the appellants under cover of duty paid documents which indicate Britannia as the buyer and the appellants as the consignees. The appellant availed Cenvat credit of duty paid on inputs like sugar, various flavours, packing materials, furnace oil etc., and utilized the same for payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med by the appellants. The entire syrup is consumed on a day to day basis and nothing in left over for more than 8 hours to avoid the syrup getting fermented. 3. Duty demand of ₹ 3,28,16,314/- for the period from 2007-08 to 2011-12 has been confirmed with interest on the ground that sugar syrup so manufactured and used in the manufacture of exempted biscuits should suffer duty since benefit of Notification No. 67/95-CE is not available and it has also been held that sugar syrup is marketable. Penalty equal to the duty demanded has also been imposed. 4. Learned advocate on behalf of the appellant submits that the sugar syrup has been held to be marketable without any evidence whatsoever. He submits that the Commissioner has simpl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Though the assessee contended that they had not sold the sugar solution outside, and the entire product was consumed within the factory, but they failed to produce any evidence to that effect that the entire sugar syrup had in fact been consumed within the Unit. The product is known as Sugar Syrup in the commercial parlance and is capable of being marketed. The shelf life of 24 hours is quite sufficient to bring the goods in the market and sell. As such, it appeared that the sugar syrup made by them is capable of being brought into the market for sale. However, we find that the most important part in the statement of Shri Mohanan which was favourable to the appellant was not recorded either in the show-cause notice or in the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion, I submit that we have not maintained any records for the Sugar solution produced. We maintained records for the entire Sugar used in the factory both for the Marie Gold Biscuit and for Good Day Biscuit. I also submit that we do not take out or sell Sugar solution. It is made for day to day consumption. Sugar solution has a limited shelf life nod it will get fermented if kept for more time. I wish to add that Britannia Industries had never told us to maintain any records for such Sugar solution and also we felt that such Sugar solution is not excisable product. I also add that we do not take credit of duty paid on Sugar purchased by us. 6. It can be seen that the statement made by Shri Mohanan in the first part is that as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king further queries and confirming the facts. Straight away proceedings have been initiated against the appellants on the ground that they were liable to pay duty on sugar syrup and it has been held to be marketable because it has a shelf life without carrying out any market enquiry and without collecting any evidence about its marketability and the fact that it has not been sold, proceedings were initiated. It is strange that only selective portion of the statement convenient to the department has been extracted in the show-cause notice resulting in proceedings culminating in confirmation of demand. Even though, the learned A.R. prays and argues that the matter should be remanded, we are not inclined to do so, since the categorical submis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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