1989 (3) TMI 210 - AT - Central Excise

Summary

Issues:
- Classification of Anhydrous Molasses under Central Excises and Salt Act, 1944
- Marketability of Anhydrous Molasses
- Applicability of Item 1E and Item 68 of the Schedule

Analysis:

Classification of Anhydrous Molasses:
The appeal was against an Order-in-Appeal that ruled Anhydrous Molasses produced by the respondents was not leviable to duty of excise. The Assistant Collector had classified it as "Glucose in whatever form" under the Central Excises and Salt Act, 1944. The Collector (Appeals) disagreed, stating it did not fall under sub-items of Item 1E of the Schedule. The Department argued that Anhydrous Molasses was "Liquid Glucose" and a marketable product. The respondents contended it was not a form of Glucose and should be classified under a different item. The Tribunal analyzed technical literature and concluded that Anhydrous Molasses did not fit the definition of Glucose under Item 1E(1) and classified it under Item 68 of the Schedule.

Marketability of Anhydrous Molasses:
The Department claimed Anhydrous Molasses was marketable based on technical literature. The respondents initially disputed this claim but later accepted it. The Tribunal acknowledged the marketability of the product based on the evidence presented and the parties' agreement. This aspect influenced the classification of Anhydrous Molasses under Item 68 of the Schedule.

Applicability of Item 1E and Item 68:
The Tribunal examined the definitions of Glucose and Dextrose, noting their interchangeability in the sugar industry. However, the specific Tariff Entry covered Glucose in various forms, including liquid glucose, dextrose monohydrate, and anhydrous dextrose separately. As there was no evidence to prove Anhydrous Molasses was known in the market as "Glucose," the Tribunal ruled out its classification under Item 1E(1) and directed its classification under Item 68, CET. The impugned order was modified accordingly, and the appeal was disposed of based on this classification.

This detailed analysis of the judgment highlights the key arguments, interpretations of legal provisions, and the ultimate decision regarding the classification and marketability of Anhydrous Molasses under the Central Excises and Salt Act, 1944.