Marketability Test

Eighty Percent Sugar, No Marketability Defence: CESTAT Holds Captively Consumed Sugar Syrup Dutiable Even Though the Biscuits It Went Into Were Exempt

A biscuit manufacturer argued its captively consumed sugar syrup, made to a proprietary formula and never sold, was not 'goods' at all. Thirteen years after the show cause notice, CESTAT Ahmedabad disagreed, applying the Supreme Court's marketability test and a bright-line sugar-content threshold from tribunal precedent, while remanding to let the company claim Cenvat credit on the inputs consumed.