TMI Blog2007 (5) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... disposed of by a common order. 2. The issue involved in this case is regarding the duty liability of the following intermediate products. (1) Gold Choloride, (2) Silver Chloride, (3) Yellow Salt of Platinum, (4) Yellow Salt of Palladium, (5) Red Salt of Platinum and (6) Ruthenium Oxide 3. The Revenue is seeking to charge excise duty on the above products on the ground that the above said products are intermediate products consumed in the manufacture of exempted product by the appellant in the factory. The appellant company resisted the excisability of the product on the ground that they are not marketable. The learned adjudicating authority while arriving to conclusion that the intermediate products are excisable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he products with higher purity would correspondingly higher. The assessee has raised a huge hue and cry that the department has no evidence to show that the purity and metal content of their products have the same purity and metal content as that of the goods offered on the website. There is no dispute that the products involved do contain precipitations /compounds of precious metals. As such they would definitely have some value corresponding to their precious metal content. It would be absurd, even for a person from a totally uncommercial background to accept that a product that contains precious metals cannot be marketed. Therefore, simple logic would dictate that they would have some sale value. Merely because they have lower purity and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Co. Ltd. as (S.C.) reported at 1997 (92) E.L.T. 315 (S.C.), Hindustan Ferodo Ltd. v Collector of Central Excise, Bombay as reported at 1997 (89) E.L.T. 16 (S.C.) and Hindustan Zinc Ltd. v C.C.E., Indore as reported at 2005 (181) E.L.T. 170 (S.C.). He also submits that the entire show cause notice is time barred. it is his submission that the authorities had recorded the statements of officers of the appellant company, in an earlier case and they are aware that intermediate products were coming into existence during the course of manufacture of final product. 5. Learned authorized representative appearing on behalf of the Revenue submits that as regards the marketability of the intermediate products it is proved beyond doubt that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of duty for further consumption in the factory premises of the appellant. This itself is an evidence to indicate that the appellants were considering gold chloride solution has dutiable product and hence the appellants have to discharge the duty on the intermediate product consumed by them in their factory premises. It is his submission that the appellant had suppressed the fact it that intermediate product emerges during the course of manufacture and hence the show cause notice invoking extended period of time is correct and the question of timebar does not arise in this case. 6. Learned Counsel in his rejoinder submits that gold chloride solution which is cleared on payment of duty by the Ahmedabad unit of the appellant is on 's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue on the stock transfer memo issued by the Ahmedabad unit of the appellant would be of no use to them. The excise invoice (which was brought our notice by the authorized representative of the Revenue) would itself indicate that the said goods (gold chloride solution) were sent on stock transfer from Ahmedabad unit to the appellants unit. This would indicate that the said gold chloride was to be consumed by the appellants in their further manufacturing process. This is not positive evidence of the marketability of the product, for the reason that the Revenue not rawn any sample of the intermediate product gold chloride which emerges in the manufacturing stream of the appellant. In the absence of any test report indicating that the interm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mathematical ratio between total quantity of silver chloride and silver content cannot establish marketability. The burden was on the department to prove such marketability. In the circumstances on facts, we hold that the department has failed to prove the test of marketability." It can be noticed from the above reproduced portion of the judgment of the Hon'ble Supreme Court, it is for the revenue to adduce evidence of marketability of the intermediate products in the form in which they are consumed and in the current appeal before us the Revenue has not made any efforts to ascertain whether intermediate product gold chloride which arises during the course of manufacture of appellants' final products has a market, as such. In the absence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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