1995 (2) TMI 67 - SUPREME COURT

Whether various goods mentioned in the Schedule of Excise Tariff are dutiable as such or they would be, 'excisable goods' as defined in the Act, only when they are marketable or capable of being marketed?

Whether resin or resol produced by the appellants can be considered to be goods for purposes of levy under the Act?

Held that:- Although the duty of excise is on manufacture or production of the goods, but the entire concept of bringing out new commodity etc. is linked with marketability. An article does not become goods in the common parlance unless by production or manufacture something new and different is brought out which can be bought and sold.

Since the test of marketability or capable of being marketable applies even to those goods which are mentioned in the tariff item the intermediate resin produced by the appellants which are mentioned as resols under Tariff Item No. 15A were not exigible to duty. The finding of the Tribunal that once the product manufactured by the appellants answered the chemical description of the product under Tariff Item 15A it was assessable to duty whether it was marketable or not was thus not well founded.In the result, these appeals succeed and are allowed. The question of law raised by the appellants is decided by saying that resin at `A' stage which are chemically known as `resols' could not be subjected to duty. In favour of assessee.