COMMISSIONER OF CENTRAL EXCISE Vs. CESTAT

JUDGEMENT

(1.) This Civil Miscellaneous Appeal, filed by the Department challenging the Final Order No. 1212 of 2008, dated 22-10-2008 passed by the Customs, Excise and Service Tax Appellate Tribunal, South Regional Bench at Chennai [2009 (245) E.L.T. 707 (Tri.-Chen.)], was admitted by this Court on the following substantial questions of law:

(2.) The case of the Department was that sugar syrup, which emerged in the course of manufacture of slice branded final product, during the period of dispute, was stable and has adequate shelf-life. Hence the same was marketable and accordingly, dutiable under SH 1702.30 of the First Schedule to the Central Excise Tariff Act. Hence, show cause notice was issued to the assessee demanding duty under Section 11A(1) of the Central Excise Act and penalty under Section 11AC of the Central Excise Act and Rule 173Q of the Central Excise Rules. In response to the said show cause notice, the assessee filed a reply denying the allegations in the show cause notice stating that sugar syrup has no shelf life and hence the same is not marketable.

(3.) The Adjudicating Authority rejected the contention of the assessee and confirmed the demand of duty and levied penalty. The relevant portion of the order of the Adjudicating Authority reads as follows: