Non-marketability of bleach liquor defeated the Revenue's prima facie case for stay in excise proceedings.

Bleach liquor was treated as non-excisable on the footing that it had short shelf-life, low available chlorine compared with commercially available bleach powder and chlorine, and substantial water content making it unstable and non-marketable. On that basis, the Tribunal held that the Revenue had not shown a strong prima facie case to justify staying the order. The stay applications were rejected.

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Issues: Whether the Revenue had made out a strong prima facie case for staying the operation of the order holding that bleach liquor was not chargeable to excise duty on the grounds of short shelf-life and non-marketability.

Analysis: The impugned finding proceeded on the basis that the bleach liquor was diluted, had low available chlorine compared with commercially available bleach powder and chlorine, and was unstable because it carried a major portion of water. On that basis, the Tribunal found that the Revenue had not demonstrated a strong prima facie case warranting stay of the order.

Conclusion: The stay applications were rejected.

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