Marketability test defeats excise duty on site-fabricated items; amount deposited under protest was refundable.

Fabricated items made at site for erection of electricity lines were not liable to central excise duty because they were not intended for sale and were not shown to be marketable commodities known in trade. As excisability depends on manufacture, marketability and the character of goods, the items did not satisfy those requirements and were not dutiable. The amount deposited under protest was therefore refundable to the appellant.

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Issues: Whether the fabricated items made at site for erection of electricity lines were goods liable to central excise duty and whether the amount deposited under protest was refundable.

Analysis: The items were fabricated at the appellant's site for use in erection of electricity lines and were not intended for sale in the market. They were not shown to be commodities known in trade. Since central excise duty can be levied only on goods satisfying the requirements of manufacture, excisability, and marketability, the fabricated items did not answer that description and did not attract duty liability.

Conclusion: The fabricated items were not dutiable, and the amount deposited under protest was refundable to the appellant.

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