2004 (4) TMI 508 - AT - Central Excise

Plastisol not excisable goods: Tribunal favors applicant, waives duty.

The Tribunal held that plastisol, an intermediate product for toys, is not excisable goods liable to duty. The burden of proof on marketability rests with ... Stay/Dispensation of pre-deposit Issues:1. Whether plastisol is excisable goods liable to dutyRs.2. Burden of proof on marketability of plastisol.3. Pre-deposit of duty and penalty.Analysis:1. The issue at hand is whether plastisol, an intermediate product used in the manufacture of toys, is excisable goods liable to duty. The department argues that since the final product is exempt from duty, plastisol should be considered excisable. On the other hand, the applicant contends that plastisol is not marketable as it has a limited shelf life and must be used within a specified time. The applicant relies on a previous decision where the onus to prove marketability was on the Revenue. It is argued that plastisol is not marketable without a viscosity depressant, which is not added in this case.2. The Tribunal, after hearing both parties, observes that the burden of proof regarding marketability lies with the department. Considering the limited shelf life of plastisol and the arguments presented by the applicant, the Tribunal finds that the applicants have a strong case in their favor. Due to the substantial amount demanded as duty and penalty, the Tribunal decides to dispense with the pre-deposit of duty and penalty. The hearing is scheduled for a later date to further address the matter.3. The Tribunal's decision to dispense with the pre-deposit of duty and penalty indicates a favorable stance towards the applicant's arguments regarding the marketability of plastisol. This decision allows for a more thorough examination of the case during the upcoming hearing, providing an opportunity for both parties to present additional evidence and arguments before a final decision is reached.