Marketability as a condition for excise duty on intermediate goods requires proof of commercial marketability before levy can stand.

Marketability is a prerequisite for excise duty on an intermediate product, and Revenue must prove that the goods are capable of being marketed and are commercially known as a product. Where the record does not show proper examination of that foundational requirement, the matter cannot be finally decided and must be re-examined by the original authority. The remand was also treated as keeping open the other surviving contentions, so classification and exemption issues were to be considered in the de novo adjudication. The impugned order was set aside and the dispute sent back for fresh decision after evidence and hearing.

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Issues: (i) whether the intermediary C.I. Castings were marketable and therefore excisable, and whether the lower authorities had correctly dealt with that question; (ii) whether the appeal required remand for consideration of the other issues also, including classification and exemption.

Issue (i): whether the intermediary C.I. Castings were marketable and therefore excisable, and whether the lower authorities had correctly dealt with that question.

Analysis: Marketability is a necessary condition for levy of excise duty on an intermediate product. The burden lies on Revenue to establish that the goods are capable of being marketed and are commercially known as a product. The record showed a dispute on marketability, with the appellant denying that the castings were sold as such and relying on evidence that the product was not marketable, while the lower authorities had not examined the point on adequate evidence. In the absence of proper findings on this central requirement, the issue could not be finally decided.

Conclusion: The question of marketability was not finally established and had to be re-examined by the original authority.

Issue (ii): whether the appeal required remand for consideration of the other issues also, including classification and exemption.

Analysis: The remand from the Supreme Court had left all contentions open. The Tribunal therefore held that the remand proceedings were not confined only to marketability and that the remaining issues raised by the appellant, including classification and exemption, also required consideration in the de novo adjudication.

Conclusion: The matter was remanded for fresh consideration of marketability and the other issues raised.

Final Conclusion: The impugned order was set aside and the dispute was sent back to the original authority for de novo adjudication on all surviving issues, with the parties to lead evidence and with an opportunity of hearing.

Ratio Decidendi: Excise duty on an intermediary product can be sustained only if Revenue proves that the product is marketable and commercially known, and where that foundational issue is not properly examined, the matter must be remitted for fresh decision.

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