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2023 (4) TMI 1071 - AT - Central ExciseLevy of Excise duty - intermediate excisable goods (Sugar syrup) which emerges during the process of manufacture of biscuits - demand on the ground that final product i.e. biscuits are exempted from Central Excise Duty - HELD THAT:- The department has not come up with any evidence to prove that the ‘Sugar Solution’ arising at the intermediate stage in the course of manufacturing of biscuits is marketable. In the absence of any such evidence and considering the fact that the condition in which ‘sugar solution’ emerges has very short life and thus not marketable in the condition in which it emerges during process of manufacture. This issue has been settled by this tribunal in catena of decisions - reliance can be placed in the case of M/S DISHA FOODS PVT LTD, M/S ANAND FOOD PRODUCTS PVT LTD VERSUS COMMISSIONER OF CUSTOMS, CENTRAL EXCISE & SERVICE TAX, HYDERABAD - II [2019 (7) TMI 1462 - CESTAT HYDERABAD] where it was held that There are no sufficient evidence to show that the sugar syrup manufactured by appellant is a marketable commodity. In the case of M/S. LUCKY BISCUIT COMPANY VERSUS COMMISSIONER OF CENTRAL EXCISE, PATNA [2017 (7) TMI 235 - CESTAT KOLKATA] it was held that CBEC Circular dated 7.11.1994 relied upon by the lower authorities has been issued in respect of sugar syrup produced in the manufacture of aerated water and ayurvedic medicines. Hence, the same cannot be applied to the sugar syrup being produced for the biscuits without establishing that the two products are identical. Since, the facts of the matter at hand are similar to one which have been cited, the same is followed and it is held that the impugned Order-In-Appeal is not sustainable - appeal allowed.
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