Modern Bakers (Madras) Pvt. Ltd. Vs Commissioner of GST & Central Excise (CESTAT Chennai)
CESTAT Chennai held that burden of showing that the goods are marketable is on department. Since department has not discharged its burden of showing that the goods i.e. sugar invert syrup is marketable no excise duty can be levied. Accordingly, appeal allowed.
Facts- The appellant is a manufacturer of biscuits on job work basis during which ‘sugar invert syrup’, is manufactured and captively consumed. The goods fall under Chapter Heading 19 and 17 of Central Excise Tariff Act 1985, respectively. Biscuits are exempted from payment of central excise duty in terms of Notification No. 3/2007-CE dated 01.03.2007 hence it was felt by the department that sugar syrup consumed captively is liable to discharge central excise duty.
Accordingly, a Show Cause Notice, was issued to the appellant and after due process an Order-in-Original, was passed demanding a duty of Rs.4,97,455/- along with interest for the period from December 2009 to February 2010. A penalty was also imposed under Rule 27 of the Central Excise Rules, 2002. The appellant preferred an appeal against the order before the Commissioner (Appeals) and the same came to be rejected. Hence the present appeal.
