TMI Blog2019 (7) TMI 1462X X X X Extracts X X X X X X X X Extracts X X X X ..... 1702 9090 - In the case of Anand Food Products Pvt Ltd, the fructose content was tested and found to be below 50%. Therefore, the sugar syrup cannot be classified under Chapter heading 1702 9090. Benefit of N/N. 67/95-CE - HELD THAT:- The notification exempts intermediate products even if the final product is exempt, if the appellant follows the procedure prescribed under Rule 6 of CCR, which the appellants have done in this case. Appeal allowed - decided in favor of appellant. - Appeal No. E/30487/2016, E/30672/2017 - A/30671-30672/2019 - Dated:- 10-7-2019 - MR. S.S. GARG, MEMBER (JUDICIAL) And MR. P. VENKATA SUBBA RAO, MEMBER (TECHNICAL) Shri G. Prahlad, Advocate for the Appellants. Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccordingly, the show cause notices were issued demanding duty along with interest and proposing imposition of penalty. The appellants contest the demands on the following grounds. (1) The sugar syrup which they manufacture has a short shelf life and hence is not marketable. They rely on the case laws of Lucky Biscuits Company [2017 (7) TMI 235 CESTAT Kolkata], Parle Biscuits Pvt Ltd [2018 (1) TMI 465] and Bhagwati Foods Pvt Ltd [2016 (9) TMI 678]. For this reason itself the demand according to the appellants is not sustainable. (2) The department seeks to classify the product under chapter heading 1702 9090 and to fall under this heading, the goods should match the description, other, including invert suga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uts ) manufactured in a factory and used within the factory of production in or in relation to the manufacture of final products specified in column (2) of the said Table; [From the whole of the duty of excise leviable thereon which is specified in the Schedules to the Central Excise Tariff Act, 1985 (5 of 1986) or additional duty of excise leviable thereon, which is specified in the Schedule to the said Special Importance Act] [ Provided that nothing contained in this notification shall apply to inputs used in or in relation to the manufacture of final products which are exempt from the whole of the (duty of excise or additional duty of excise leviable thereon) or are chargeable to nil rate of duty, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Cenvat credit rules and therefore, they are covered by the notification 67/1995-CE even if their product is held to be marketable and is held to be classifiable under Tariff heading 1702 9090. Accordingly, the demand is not sustainable and may be set aside. (4) On an identical case this bench in the case of Badam Foods in appeal E/30668/2016 decided vide Final Order No. A/30574/2019 dated 17.06.2019, dropped the demand on the sugar cess on the grounds of lack of evidence of marketability and the fructose content of the sugar syrup not being tested and the ratio applies to their cases. 4. Learned departmental representative reiterates the findings of the impugned order. 5. We have considere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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