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2016 (10) TMI 739 - AT - Central ExciseManufacture - intermediate product - job work - marketability - sugar syrup prepared within the factory in further manufacturing of biscuits for their principal - manufacture of biscuits on job work basis - whether Revenue was justified in holding that w.e.f. 1.3.2007, biscuits were exempted by the Notification No.3/2006-CE dated 1.3.2006, since final products (biscuits) are exempted, the intermediate product, sugar syrup arising in the appellant's unit is liable to central excise duty as the exemption under Notification No.67/1995-CE dated 16.3.95 will not be available to them? - Held that: - decision in the case of Rishi Bakers Pvt. Ltd. vs. C.C.E. & S.T., Kanpur [2015 (4) TMI 893 - CESTAT NEW DELHI] relied upon where it was held that Neither there is any evidence to prove that the goods, in question, are classifiable under 17029090 nor there is any evidence to prove that the goods, in question, in form in which they come into existence in the appellant s factories, are marketable. The impugned order is not sustainable. The same is set aside and case decided in favor of assesees. In the present case, no efforts have been made by the Department to test the product for the correct composition and nature. Instead, the percentage of sugar in syrup was arrived at by the calculation of quantity used. Further, the whole allegation of marketability is based on one invoice of another manufacturer for the product sugar invert syrup . We find that the marketability of the product now in question cannot be established derivatively without ascertaining the actual nature of the impugned product and also its marketability in reality. Intermediate product not taxable - appeal allowed - decided in favor of appellant.
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