TMI Blog2000 (12) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... t besides additional penalty of Rs. 8000/- on the respondents for violation of Rule 174 of the Central Excise Rules payable with interest at the rate of 20%. 2.The facts giving rise to this appeal may briefly be stated as under : 3.The respondents are engaged in the manufacture of products known as, frooti, Appy Pingo-Mango and Pingo-orange falling under Chapter 20 of the CETA. Their factory premises were visited by the officers of the preventive staff of the Excise Department on 22-5-1995 and it revealed that they were also manufacturing sugar syrup as intermediate product and using the same captively in the manufacture of the final product, but they neither had any Central Excise registration nor got the classification list approved. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r solution prepared by them during the course of manufacture of the final product, could not be equated with the sugar syrup which as per the Indian British USA Pharmacopea must contain minimum 885 gms. of sugar in 1000 CC, while the so-called sugar syrup produced by them contained total dissolved solid of 61.85% in 1000CC solution and they also relied on the test result dated 8-11-1995 given by the Research Laboratory, Bhopal after testing their sample of the sugar solution. But the Deputy Commissioner who was the adjudicating authority, did not agree with their version and confirmed the duty demand as indicated in all the above referred 5 show cause notices on them and imposed penalty of the equal amount of duty. He also imposed penalty o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 60/96-CX shows that the Board got the matter examined from the Chief Chemist who gave his opinion on 15-5-1996 to the effect that according to IS 4925-1958 synthetic syrup may be prepared with or without the addition of citric acid, but the syrup shall not have solid contents less than 65% by weight. The only additives that shall be used in synthetic syrup would be citric acid and permitted colours. 7.In the instant case there is no reliable evidence to prove that the sugar solution prepared at the intermediate stage in the manufacture of the final products i.e. frooti etc. by the respondents with or without the addition of citric acid had solid contents i.e. sugar contents to the extent of 65% by weight or more than that. The samples wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solid contents (sugar contents) 65% or more by weight, which was essential for bringing it within the definition of 'sugar syrup' as per the opinion of the Chief Chemist contained in the Board's Circular No. 226/60/96-CX., dated 3-7-1996, then on the basis of the Board's Circular No. 75/75/94-CX., dated 7-11-1994 no duty demand could be raised against the respondents, as the syrup prepared by them in the intermediate stage of the manufacture of their final products frooti etc. was not sugar syrup but only sugar solution as claimed by them. Consequently, the view taken by the Commissioner (Appeals) to this effect is perfectly valid and does not suffer from any legal infirmity. 8A.The suppression of the material facts by the respondents fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iate stage in the course of manufacture of final product. Moreover, even if it is assumed that through letter dated 22-8-1998 the respondents admitted the use of citric acid as preservative in the sugar solution/sugar syrup, still that would not advance the present case of the Revenue in which the period involved is much prior to 22-8-1998. This admission of the respondents may be useful to the Revenue for raising the demand for any subsequent period, but not for the period in dispute referred to above and especially for want of any allegations to that effect in the show cause notices and in the face of the report of the Regional Research Laboratory, Bhopal referred to above. 10.In view of the discussion made above, there is no merit in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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