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2016 (10) TMI 739 - CESTAT NEW DELHI

2016 (10) TMI 739 - CESTAT NEW DELHI - TMI - Manufacture - 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 un .....

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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 . .....

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ate for the appellants Shri R.K. Manjhi, A.R. for the respondent ORDER B. Ravichandran These three appeals are involving same issue of duty liability of the appellants for sugar syrup prepared within the factory in further manufacturing of biscuits for their principal (Parle Products Pvt. Ltd.). 2. The appellants are engaged in the manufacture of biscuits on behalf of M/s Parle Products Pvt. Ltd. on job work basis . During the course of manufacture of biscuits, sugar syrup is prepared and used c .....

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rity confirmed the confirmed and on appeal , the first appellate authority confirmed the original order. 3. Ld. Counsel for the appellants submitted that sugar syrup prepared by the appellant is not at all a marketable product. They do not have shelf life and they are never sold ordinarily in the market in the form in which it is prepared by the appellant. Reliance placed on the single invoice of other manufacturer is completely misplaced and not relevant to their case. They have relied on the d .....

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of sugar syrup prepared during the course of manufacture of biscuits has come up for decision by the Tribunal in many cases. In a similar set off facts involving another job worker of M/s Parle, the Tribunal in Rishi Bakers Pvt. Ltd. vs. C.C.E. & S.T., Kanpur 2015 (328) ELT 634 (Tri-Del.) held as below: 9. Even if it is assumed that the goods, in question, are covered by sub-heading 1702 90 90, for attracting Central Excise duty the goods must be proved to be marketable. The Tribunal had re .....

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articular manufacturer cannot be presumed on the basis of the marketability of the similar goods in different condition being produced by another manufacturer, unless it shown that the two products are identical. In these cases, the Commissioner (Appeals) has held that the goods, in question, to be marketable only on the basis that the invert sugar syrup being manufactured by M/s. Dhampur Speciality Sugars Ltd. is being sold to M/s. Britannia Industries, M/s. J.B. Mangaram Food Industries and M/ .....

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and fructose (with specific rotation of - 920), with net specific rotation of - 19.70. The process of hydrolysis of cane sugar (which is dextrorotatory i.e. with rotation of + 66.50) is also called inversion, as the mixture of glucose and fructose formed by this process is levorotatory with sp. Rotation of - 19.70 and for this reason the mixture of glucose and fructose formed by hydrolysis of cane sugar is called invert sugar. The invert sugar has longer shelf life. Whether a sugar syrup is ordi .....

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