TMI Blog2005 (10) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... on the part an assessee cannot be construed as willful suppression. We observe that the Tribunal in the case of Duke Sons Pvt. Ltd. v. CCE, [ 2004 (3) TMI 294 - CESTAT, MUMBAI] referred to CBEC Circulars issued in 1989, 1994 1996 on the subject of excisability/marketability of sugar syrup and held that when the issue was bogged down in controversy, suppression of facts with an intent to evade duty cannot be alleged against the assessees. The period in dispute coincides with the years in which the said circulars were issued. We, therefore, uphold the Commissioner s order that the demand for the period December 1992 to May 1997 is barred by limitation. The impugned product, in our view is not a product, which is marketable and therefore we ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o large proportion of sugar in pure water and is therefore not a commercially viable product; (c) It is not marketable as such as it comes into existence during the process of manufacture; (d) It has no shelf life; (e) A bona fide belief existed that the solution that had come into existence at an intermediate stage is not sugar syrup and (f) Extended period of limitation was not invocable. 4. The Commissioner dropped the proceedings initiated against the Respondents both on merits as well as on limitation. On merits he observed that the product manufactured by the Respondents is not Sugar Syrup as it contains other ingredients such as Potassium Sulpho Auicolate and liver extract, for a product to be classified under 17/03/30 it should have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atio of the Supreme Court s ruling in the case of Padmini Products - 1989 (43) E.L.T. 195. In this case the Supreme Court held that mere inaction on the part an assessee cannot be construed as wilful suppression. We observe that the Tribunal in the case of Duke Sons Pvt. Ltd. v. CCE, Mumbai-II - 2004 (178) E.L.T. 190 referred to CBEC Circulars issued in 1989, 1994 1996 on the subject of excisability/marketability of sugar syrup and held that when the issue was bogged down in controversy, suppression of facts with an intent to evade duty cannot be alleged against the assessees. The period in dispute coincides with the years in which the said circulars were issued. We, therefore, uphold the Commissioner s order that the demand for the period ..... X X X X Extracts X X X X X X X X Extracts X X X X
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