Marketability of intermediate jute sheet upheld, making the captive product excisable under CET sub-heading 5603.00.

An intermediate non-woven jute sheet used in the manufacture of jute backed floor coverings was found to be marketable and therefore excisable under CET sub-heading 5603.00. The fact that similar products made by the assessee were cleared and marketed on payment of duty supported the department's initial burden on marketability. The assessee did not establish any real distinction between the captive intermediate product and the marketed product beyond asserting that it was uncured and lacked elasticity, and no curing process was shown at the relevant stage. The contention that the product had no market was rejected.

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Issues: Whether the intermediate product arising in the manufacture of jute backed floor coverings was marketable and therefore excisable under CET sub-heading 5603.00.

Analysis: The product was found to be a non-woven jute sheet with some stability imparted by the manufacturing process. Similar products made by the assessee were being cleared and marketed on payment of duty, which established the department's initial burden on marketability. The assessee failed to show any real distinction between the captive intermediate product and the marketable product other than the assertion that it was uncured and lacked elasticity. On the record, no curing process had been shown up to the stage at which duty was demanded, and the contention that the product had no market was not accepted.

Conclusion: The intermediate product was held to be marketable and hence excisable, and it was classifiable under CET sub-heading 5603.00; the contention of the assessee was rejected.

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