Marketability of waste weak HCL acid rejected as mere nominal sale did not prove excisable goods status

Waste weak HCL acid generated during manufacturing and incineration was treated as non-marketable because it was a highly contaminated waste product with low HCL concentration and no established commercial identity as goods known in the market. Mere sale at a nominal price did not prove marketability, and the burden to establish that the material was a distinct excisable commodity remained on the Revenue. On the evidence, the product was not shown to be capable of being treated as a commercially known article, so it was not liable to central excise duty.

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Issues: (i) Whether waste weak HCL acid emerging during the manufacturing and incineration process was marketable and therefore excisable.

Analysis: The material on record showed that the product was a highly contaminated waste acid with low HCL concentration, generated from disposal of hazardous waste, and that mere sale for a nominal price did not establish marketability. Marketability requires a commercial identity as goods known in the market for being bought and sold, and the burden to prove this lies on the Revenue. The evidence relied upon did not show that the waste weak HCL acid was a commercially known commodity or capable of being treated as a distinct excisable product.

Conclusion: The issue was decided in favour of the assessee. Waste weak HCL acid was held not to be marketable and not liable to central excise duty.

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