Marketability test defeats excise duty on polypropylene tubes arising in plastic satranjis manufacture

Polypropylene tubes emerging during manufacture of plastic satranjis were treated as non-marketable goods on the basis of the Board's circular, so they were not excisable and no duty could be levied on them. Because the tubes were not capable of being marketed, the proposed classification dispute under heading 54.04 did not require determination on merits. The revenue's classification challenge was therefore rendered academic. The document states that the goods were held not liable to duty and the appeal was dismissed.

---

---

Issues: Whether polypropylene tubes arising in the course of manufacture of plastic satranjis were marketable goods liable to duty and classifiable under heading 54.04.

Analysis: The Board's circular clarified that the polypropylene tubes emerging in the manufacturing process of plastic satranjis were not capable of being marketed. On that basis, they could not be treated as excisable goods attracting duty, and the proposed classification dispute under heading 54.04 did not require adjudication on merits.

Conclusion: The goods were held not liable to duty, and the revenue's classification challenge was treated as academic. The appeal was dismissed.

---