Returned broken tiles not liable to excise duty under Section 4A absent proof of marketability or dutiability.

Returned broken tiles were not liable to duty under Section 4A of the Central Excise Act, 1944 because that provision applies only to notified goods. The Revenue failed to establish that the broken tiles were marketable or otherwise dutiable goods, so there was no legal basis to assess them merely because the original unbroken tiles had earlier been cleared under Section 4A. On that footing, the tribunal held that the returned broken tiles were not exigible to duty under Section 4A and allowed the appeal.

---

---

Issues: Whether broken tiles that returned from the course of export could be subjected to duty under Section 4A of the Central Excise Act, 1944.

Analysis: Section 4A applies only to goods notified for its purpose. The Revenue did not establish that the broken tiles were marketable or otherwise dutiable goods. In the absence of such a foundation, the returned broken tiles could not be brought to duty under Section 4A merely because the unbroken tiles had earlier been cleared under that provision.

Conclusion: The broken tiles were not exigible to duty under Section 4A of the Central Excise Act, 1944, and the appeal was allowed.

---