Commercial meaning of porcelainware controls excise liability for specialised lightning arrester components.

Porcelain shells manufactured as specialised components for lightning arresters were not porcelainware within Tariff Item 23-B because the term had to be understood in its ordinary commercial sense. Excise duty under section 3 of the Central Excises and Salt Act, 1944 applies only to goods known to the market and ordinarily capable of being bought and sold. The shells were made to specific Westinghouse specifications, were not shown to be marketed as porcelainware, and were not established as goods known to the commercial or consuming community by that description. Their material composition and use in further manufacture did not make them excisable goods under the tariff item.

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Issues: Whether porcelain shells manufactured for use as components in lightning arresters were excisable goods falling within Tariff Item 23-B as porcelainware and liable to central excise duty.

Analysis: Excise duty under section 3 of the Central Excises and Salt Act, 1944 is attracted by manufacture of goods, but the article manufactured must be goods known to the market and ordinarily capable of being bought and sold. The expression porcelainware in Tariff Item 23-B had to be understood in its ordinary commercial sense. The porcelain shells in question were specially designed porcelain housings manufactured to Westinghouse specifications only as parts of lightning arresters, were not shown to be marketed as porcelainware, and were not established to be goods known to the consuming or commercial community as such. The mere fact that they were made of porcelain or used in further manufacture did not make them porcelainware within the item.

Conclusion: The porcelain shells were not liable to excise duty under Tariff Item 23-B and were not excisable goods for the purpose of the levy.

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