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2013 (1) TMI 251 - AT - Central ExciseManufacture - Classification – Department classify Prasad and Mishri as sugar confectionery under sub-heading 1704.90 – Assessee contended that it’s classifiable under sub-heading 2108.30 Held that:- The new commercial commodity emerging by a process of “manufacture” must also have character and hence usages different from the original material from which the new commodity has been made. In this case, the character and usage of the goods - ‘Prasad’ and ‘Mishri” remain the same as sugar from which the same have been made, as both the products have more than 90% sucrose and both the products are used for sweetening the foods and beverages, which is the same as the use of sugar from which the same are made. These are just a form of sugar. Mishri is nothing but a form of sugar with bigger crystals and “Prasad” in this case is an amorphous form of sugar. Just because by subjecting a material to some process, a product with a new name emerges, the process cannot be called manufacture - for manufacture to take place, the resulting product must have a new commercial identity and must have character and usages different from the character and usages of the material from which it has been made Therefore for making of ‘Prasad’ and ‘Mishri’ from sugar does not amount to manufacture and hence ‘Prasad’ and ‘Mishri’ can neither be charged to duty by classifying them neither under 1704.90 nor under any sub-heading of 1701.
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