Marketable wire cut to length remains raw material, so Rule 56B excise relief was not available.

Cold drawn wires dispatched for manufacture of welded mesh remained marketable wire products falling within the relevant tariff description, and cutting them to length for line wires or cross wires did not change their character into semi-finished goods. As a result, the articles were treated as raw material rather than goods eligible for the special procedure under Rule 56B of the Central Excise Rules, 1944, and the claim for that benefit was rejected.

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Issues: Whether cold drawn wires dispatched for use in the manufacture of welded mesh were eligible for the procedure under Rule 56B of the Central Excise Rules, 1944.

Analysis: The wires produced in the factory were themselves marketable articles and fell within the tariff description of wires of the relevant diameter. Mere cutting the wires into particular lengths for use as line wires or cross wires did not alter their character into semi-finished goods for the purpose of welded mesh. On the facts, the articles were in the nature of raw material and not goods entitled to the Rule 56B procedure.

Conclusion: The claim for the benefit of Rule 56B was rejected and the finding of the Collector was sustained, against the assessee.

Final Conclusion: The appeal failed, as the dispatched cold drawn wires were held to be marketable raw material and not semi-finished goods eligible for the special excise procedure.

Ratio Decidendi: A marketable product used as input for further manufacture does not become semi-finished goods merely because it is cut to length for the next manufacturing stage, and therefore is not entitled to Rule 56B relief.

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