Marketability is essential for central excise duty on wagon parts; unproven marketable goods are not dutiable.

For central excise, duty arises only where a product is both manufactured and marketable as a distinct identifiable commodity; mere inclusion in the tariff is insufficient. The Revenue must prove marketability, and here it produced no evidence that the underframe or covered type container emerged as separate goods capable of being bought or sold in the market. The valuation was also described as unrealistic, and the Railway Ministry's opinion supported the view that the items were not marketable. The impugned wagon parts were therefore not liable to excise duty, and the orders were set aside with the appeals allowed.

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Issues: Whether the underframe and covered type container arising during wagon fabrication were marketable excisable goods liable to central excise duty as identifiable parts of wagons.

Analysis: Excise duty is attracted only when the product is manufactured and is also marketable, meaning capable of being bought or sold in the market or known in the market as a distinct identifiable commodity. Mere inclusion in the tariff is not enough. The Revenue had to establish marketability, but produced no evidence that the underframe was marketable or that the alleged covered type container ever came into existence as a separate goods. The valuation adopted was also found to be wholly unrealistic, and the opinion of the Railway Ministry supported the view that the impugned goods were not marketable.

Conclusion: The goods were not proved to be marketable identifiable wagon parts and were not liable to excise duty.

Final Conclusion: The impugned orders were set aside and the appeals were allowed on the ground that marketability, a condition precedent for excisability, was not established.

Ratio Decidendi: For central excise, a product is dutiable only if it is both manufactured and marketable as a distinct identifiable commodity, and the burden to prove marketability lies on the Revenue.

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