Marketability as a condition for excisability: intermediate felt was not proved marketable and so escaped central excise duty.

Marketability is a condition precedent to excisability under central excise law, so an intermediate product is not liable to duty unless it is shown to be sold or capable of being marketed. On the record, no evidence established that the intermediate felt had marketability at the stage in question, and the Supreme Court principle on marketability supported that conclusion. The felt was therefore not proved to be excisable, and the issue was decided in favour of the assessee.

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Issues: Whether the intermediate felt was marketable and therefore excisable so as to attract central excise duty.

Analysis: Marketability is a condition precedent to excisability. An item is not liable to excise duty unless it is shown to be sold or capable of being marketed. The record contained a categorical finding that no evidence had been brought to show that the goods were marketable at the intermediate stage, and the accepted legal position from the Supreme Court supported that conclusion.

Conclusion: The felt was not proved to be marketable and was therefore not excisable. The issue was decided in favour of the assessee.

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