Marketability evidence governs excise duty on intermediate products; unproved saleability can defeat classification and exemption claims.

Excise duty on an intermediate product depends on proof that it is marketable in the condition in which it emerges; mere assertion is insufficient. The product was found to be at an intermediate stage requiring further processing, and the department had not established by evidence that it was saleable either as an aluminium can or as a marker pen component. The finding of excisability was therefore set aside, and the matter was remanded for fresh consideration, including the proposed affidavit and the alternative claim for exemption as a component part under the relevant tariff entry and notification.

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Issues: Whether the extruded product was marketable and liable to excise duty as aluminium cans under Heading 7612.91, and whether, if treated as component parts of marker pens, it could qualify for exemption under Heading 96.08 and Notification No. 83/90.

Analysis: Marketability for excise purposes requires proof that the goods are capable of being bought and sold in the condition in which they emerge, and such capability cannot rest on assumption. The product was at an intermediate stage, requiring further processing, and the department had not established by evidence that it was saleable either as a can or as a marker pen component. The alternative claim for exemption also required consideration if the goods were held to be components of marker pens.

Conclusion: The finding of excisability was set aside, and the matter was remanded for fresh consideration after receipt of the proposed affidavit and for decision on the alternative exemption plea.

Final Conclusion: The assessee obtained relief on the central issue of marketability, but the classification and exemption questions were left for reconsideration by the original authority.

Ratio Decidendi: Excise duty on an intermediate product can be sustained only when the department proves marketability by evidence, not by mere assertion, and any alternative exemption claim must be examined on the basis of the product's true character.

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