2018 (10) TMI 457 – CESTAT NEW DELHI – TMI – Dutiability/marketibility – intermediate products in manufacture for the exempted goods – suppression of facts – Held that:- It is the fact that the plastic jars which are manufactured by them is branded with Suruchi brand and cannot have independent marketability of itself – in various case laws also it is clearly held that it intermediate product do not have the marketability then the same case be subjected to excise duty.
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As per the case records there does not appear to be a deliberate intention by appellant to suppress any material facts from the Department. They were under the bona fide belief that they do not come under the purview of Central Excise as their turnover is less than the exemption limit as specified under the Notification 8/2003.
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On account of the marketability, limitation and the limit of small exemption Notification No.8/2003, the appellant is entitled for the benefit as claimed by them, and therefore, the i
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nufactured in their own plant with their own brand Suruchi used to be utilized for packing of the final product. It is the contention of the Revenue that since the plastic bottles have been manufactured by them, which is dutiable, and accordingly the duty should be discharged by the appellant on such products manufactured and used for packing of the final product. 3. Against this background, we have heard ld. Advocate, who has submitted as under: (1)During the course of visit by the Preventive Officer of Central Excise Division Chhindwara, it was noticed that the appellant had manufactured Plastic Bottles on automatic machine in their factory/premises situated at Plot No. 41,42,46 & 47, Food Parte, Borgoan, Sausar, District-Chhindwara(MP). It was also noticed that the notice were manufacturing various types of Pickles and species separately in their plant on automatic machines. Such pickles and spices manufactured by them were then packed in different quantity in various sizes of p
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d sold by them. 4. Ld. AR on the other hand, states that since they had manufactured the goods which are exempt, and therefore, they should discharged the duty on the intermediate goods which is emerging out of which is dutiable under the Central Excise Tariff Act. It was also impressed upon that it is the department, who after inquiry found that such a process being taken by the appellant without informing the Department, and therefore, it is the mala fide on their part. Therefore, they have deliberately with full intention, suppressed the material fact from the Department. 5. We have heard the rival contention and pursued the appeal records. The issue involved in this case is regarding the dutiability of intermediate products in manufacture for the exempted goods. It is the fact that the plastic jars which are manufactured by them is branded with Suruchi brand and cannot have independent marketability of itself. We have also perused various case laws wherein it is clearly held that i
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