TMI Blog2008 (8) TMI 661X X X X Extracts X X X X X X X X Extracts X X X X ..... : S.S. Kang, Vice-President]. Heard both sides. 2. The appellant filed this appeal against the impugned order where the demand was confirmed on wet starch. 3. The appellants are engaged in the manufacture of sago which is exempted from payment of Central Excise duty. The manufacturer of sago as explained by the appellant is as under :- Tapioca is washed, cleaned and the bark is removed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... get themselves separated and then packed into bags for marketing. 4. The case of the Revenue is that wet starch which is an intermediate product is liable to excise duty as the final product sago is exempted from payment of duty. 5. The contention of the appellant is that final product is manufactured in a continuous process and starch slurry comes into existence during the manufacture of fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts v. CCE reported in 1987 (29) E.L.T. 321 where the Tribunal held that starch slurry being an intermediate product and being neither marketed nor marketable, not liable to levy of excise duty. 6. The contention of the Revenue is that during the manufacture of sago starch slurry come into existence and on reduction of moisture contents the same is being capable of being marketed as wet starch as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturing process as explained by the appellant is not in dispute. In respect of marketability, we find that the Commissioner (Appeals) in the case of M/s. Kumar Sago Factory vide order dated 17-9-2005 dropped the demand in respect of starch slurry which was raised on the same grounds as in the present case. The Commissioner (Appeals) held that starch slurry is not marketable. The Commissioner (Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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