TMI Blog1987 (7) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... At one stage rubber compound is dissolved in volatile solvents to prepare a solution which is applied to cotton fabrics without the aid of power. After application of the rubber compound the cotton fabric is cut into pieces and these pieces are placed one over the other as per requirement and thereafter they are vulcanised to form sheetings of the maximum size of 18"/24". The process of vulcanising is necessary to impart elasticity to the sheeting which is essential for the further use of such sheeting's in manufacture of V Link Beltings. The said sheeting is thereafter cut into strips on a shearing machine, slit and punched into links on power press. The said links are studded on studding machine, riveted and assembled to produce V Link B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht and sold and in fact are not marketed nor marketable. 2. However some time in 1968, the Inspector of Central Excise made a demand of Rs. 565.35 alleging that the 1st petition was rubberising cotton fabrics and as such duty of excise was payable thereon. The petitioners made their representation before the then Assistant Collector of Central Excise but he too held that the item was subject to levy of excise duty under Tariff Item No. 19 of the first schedule. The petitioners, thereafter filed an appeal before the Collector of Central Excise on March 9, 1970 and the appellate Collector remanded the matter back by his order dated October 9, 1974. 3. After the matter was remanded, a fresh show cause notice dated March 24, 1975 was issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice and they threatened action if the amount was not paid within ten days. 6. Thereupon the petitioners filed this petition on September 9, 1975 and since then of course the matter is pending in this Court. 7. Mr. Hidayatullah appearing for the petitioners pointed out that there are more than one judgments of this Court as also of other High Courts that as the item is not marketable or saleable, it cannot be considered as goods for the purpose of charging any excise duty. There is one unreported case being Misc. Petition No. 401 of 1963 (Cosmos India Rubber Works Pvt. Ltd. and another v. G. Koruthu, Collector of Central Excise and two others) decided by Mr. Justice Tarkunde, as he then was. The judgment is dated March 10, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... component in making flashlight cases the cans have to undergo various processes such as trimming, threading and redrawing. After the cans are trimmed, threaded and redrawn they are reeded, beaded and anodised or painted. It is at that point only that they become a distinct and complete component, capable of being used as a flashlight case for housing battery cells and having a bulb fitted to the case. We find it difficult to believe that the elementary and unfinished form in which they exist immediately after the extrusion suffices to attract a market. The appellant has averred in affidavit that aluminium cans in that form are unknown in the market. No satisfactory material to the contrary has been placed by the respondents before us. Refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as in that judgment there is an express finding to the effect that the article was saleable and marketable. 10. Mr. Rege then drew my attention to a statement made by the Inspector of Central Excise which is annexed to the affidavit of one Shri Parthasarathy, Assistant Collector of Central Excise, dated August 22, 1977. In that the Inspector of Central Excise has, recorded that his enquiries regarding marketability of the vulcanised fabrics, made with certain parties at Nagdevi Street at Bombay, revealed that the product could be marketed and it can be used for body building of vehicles and also for heavy machinery etc. However, his enquiries also revealed that such fabrics are not stored as there is no general market for such product o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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