Marketability of intermediate rubberised cotton fabrics defeats excise duty where proof of marketability is lacking.

Rubberised cotton fabrics used captively in fan belt manufacture, and also sent for job work, are treated as non-marketable intermediate products unless marketability is proved. Prior decisions on rubberised cotton fabrics and similar belt-making intermediates were relied on to show that such goods do not acquire excisable character at the intermediate stage merely because a tariff entry exists. The absence of proof of marketability was treated as decisive, and the Revenue's claim to excise duty on the intermediate product was rejected.

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Issues: Whether rubberised cotton fabrics used captively in the manufacture of fan belts and also supplied for job work were marketable goods liable to excise duty.

Analysis: The Tribunal relied on prior judicial decisions holding that rubberised cotton fabrics, friction cloth, and similar intermediate products used in belt manufacture are not generally marketable and therefore do not acquire the character of excisable goods at the intermediate stage. The absence of proof of marketability was treated as decisive, and the existence of a tariff entry was not taken as sufficient by itself to fasten duty where the product was otherwise not shown to be marketable.

Conclusion: The rubberised cotton fabrics were held not liable to excise duty, and the Revenue appeal was rejected.

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