Marketability test for central excise: rigid polyurethane foam was found non-excisable as it was neither marketed nor marketable.

Rigid polyurethane foam is not liable to central excise duty unless it is marketable or capable of being marketed. The Tribunal followed its earlier consistent view, noting that the goods were neither marketed nor capable of being marketed, and relied on the settled line of authority on marketability. It also noted that the Supreme Court had upheld the same approach in a similar matter by dismissing the Revenue's challenge. On that basis, excisability was negatived and the Revenue's appeals failed.

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Issues: Whether rigid polyurethane foam was excisable and liable to central excise duty on the touchstone of marketability.

Analysis: The Tribunal noted that the issue had already been consistently decided in favour of the assessee in earlier decisions and that the goods were neither marketed nor capable of being marketed. It also noticed that the Supreme Court had upheld the Tribunal's view in a similar matter by dismissing the Revenue's appeal, and therefore followed the settled line of authority on marketability.

Conclusion: The goods were held not to be excisable, and the Revenue's appeals failed.

Ratio Decidendi: A product is not liable to excise duty unless it is marketable or capable of being marketed, and settled Tribunal precedent upheld by the Supreme Court should be followed on that question.

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