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2013 (3) TMI 211 - CESTAT NEW DELHIExemption Notification No. 67/95-C.E., dated 16-3-1995 benefit denied - as per dept. certain quantity of the corrugation gum made in the factory is used within the factory in the manufacture of corrugated boxes, cartons and other articles cleared at nil rate of duty - whether the corrugation gum in question has shelf-life? - Held that:- The corrugation gum is made by mixing starch and borex with caustic soda in certain proportion and the same is used captively in the manufacture of corrugated packing material and trays. The department simply relies upon the statements of Shri V.S. Gupta of M/s. Sankla Chemicals and Shri Sushil Garodia of M/s. Progressive Packaging Industries, according to whom, the corrugation gum made in those factories has shelf-life 3 to 4 days. As found that no chemical test of the corrugation gum has been done by the department to establish that the same was containing any preservatives or not. In absence of such chemical test report, merely on the basis of statements of employees of some other factories, it cannot be concluded that the corrugation gum manufactured in the appellant’s factory also has shelf-life of 3 to 4 days and on this basis marketable. The burden of proving that a particular product produced by a manufacturer is marketable is on the Department and the Department has not produced any evidence in support of this contention. Thus the corrugation gum made by the appellant in their factory is not marketable and hence not excisable. The impugned order confirming the duty demand against the Appellant is, therefore, not sustainable - in favour of assessee.
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