COLLECTOR OF CENTRAL EXCISE, BARODA v. AMBALAL SARABHAI ENTERPRISES

Citation: [1989] 3 S.C.R. 784

Court: Supreme Court of India

Bench: SABYASACHI MUKHERJI, B.C. RAY

Case summary

It was held by him that starch hydrolysate was glucose and fell under item 1-E of the Central Excise Tariff and that the respondent had suppressed the fact of manufacture thereof for - consumption in the further manufacture of sorbitol....

Judgment text

The Judgment of the Court was delivered by SABYASACHI MliKHARJI, J. This is an appeal under section 35L(b) of the Central Excises & Salt Act, 1944 (hereinafter referred to as 'the Act'). The appeal is directed against the order dated 2nd November, 1987 passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (hereinafter referred to as 'the Tribunal'). The respondent, viz. , Mis Ambalal Sarabhai Enterprises manufacture sorbitol falling under C' . 235-237 of the present paper book. In view of the fact that there was positive evidence that starch hydrolysate was never marketed and in view of further fact that in the light of the nature of the goods being highly unstable, it is. highly improbable that the goods were capable of being marketed and there being in splti: of COLLECTOR OF C. E. v. A. S. ENTERPRISES [MUKHARJI. J.

] 795 the opportunities, no evidence produced at all that the goods, in fact, A were capable of being marketable, in our opinion, it must be held as did the Tribunal that the starch hydrolysate were not dutiable under the Act. ,~· In the premises, the revenue has failed to discharge its onus to B 1 prove that starch hydrolysate was dutiable. In the premises, (he Tribunal cannot be said to have committed any error. The appeal must, therefore, fail and is, accordingly, dismissed. In the facts and the . circumstances of the case, there will, however, be no orders as to \_costs. ' R. S. S. Appeal dismissed. -