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TMI Blog2014 (8) TMI 777X X X X Extracts X X X X X X X X Extracts X X X X ..... ts started their commercial production in March 2007 and started manufacturing the goods as a job worker of Britannia in terms of agreement dated 21.12.2006 entered into between the parties. In terms of the agreement, Britannia supplies the various duty paid raw materials to the appellants under cover of duty paid documents which indicate Britannia as the buyer and the appellants as the consignees. The appellant availed Cenvat credit of duty paid on inputs like sugar, various flavours, packing materials, furnace oil etc., and utilized the same for payment of duty on the final product cleared from the factory. Among the aforesaid biscuits, "Marie gold" biscuits are exempted from payment of duty since MRP of the product is below Rs. 100 per k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,28,16,314/- for the period from 2007-08 to 2011-12 has been confirmed with interest on the ground that sugar syrup so manufactured and used in the manufacture of exempted biscuits should suffer duty since benefit of Notification No. 67/95-CE is not available and it has also been held that sugar syrup is marketable. Penalty equal to the duty demanded has also been imposed. 4. Learned advocate on behalf of the appellant submits that the sugar syrup has been held to be marketable without any evidence whatsoever. He submits that the Commissioner has simply observed that because sugar syrup has a shelf life of 24 hours and since ready mix concrete which has a shelf life of less than that is marketable and is marketed, sugar syrup is also marke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory, but they failed to produce any evidence to that effect that the entire sugar syrup had in fact been consumed within the Unit. The product is known as Sugar Syrup in the commercial parlance and is capable of being marketed. The shelf life of 24 hours is quite sufficient to bring the goods in the market and sell. As such, it appeared that the sugar syrup made by them is capable of being brought into the market for sale." However, we find that the most important part in the statement of Shri Mohanan which was favourable to the appellant was not recorded either in the show-cause notice or in the impugned order. While giving the statement Shri Mohanan has stated as follows: &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Sugar solution produced. We maintained records for the entire Sugar used in the factory both for the Marie Gold Biscuit and for Good Day Biscuit. I also submit that we do not take out or sell Sugar solution. It is made for day to day consumption. Sugar solution has a limited shelf life nod it will get fermented if kept for more time. I wish to add that Britannia Industries had never told us to maintain any records for such Sugar solution and also we felt that such Sugar solution is not excisable product. I also add that we do not take credit of duty paid on Sugar purchased by us." 6. It can be seen that the statement made by Shri Mohanan in the first part is that as soon as they stopped paying duty on the exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Straight away proceedings have been initiated against the appellants on the ground that they were liable to pay duty on sugar syrup and it has been held to be marketable because it has a shelf life without carrying out any market enquiry and without collecting any evidence about its marketability and the fact that it has not been sold, proceedings were initiated. It is strange that only selective portion of the statement convenient to the department has been extracted in the show-cause notice resulting in proceedings culminating in confirmation of demand. Even though, the learned A.R. prays and argues that the matter should be remanded, we are not inclined to do so, since the categorical submission made in a statement recorded under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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