Marketability is essential for excise duty; dip solution not dutiable because it was not marketable goods.

Dip solution used in tyre manufacture was held not to be an artificial or synthetic resin under Tariff Item No. 15A(1), and on the evidence it was also not a marketable commodity. Because marketability is an essential ingredient of excisability, a product that is not known to the market as goods is not liable to excise duty merely by falling within a tariff description. The dip solution was therefore not exigible to excise duty, and the assessee succeeded.

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Issues: Whether the dip solution used in tyre manufacture was exigible to excise duty under Tariff Item No. 15A(1).

Analysis: The dip solution was held not to be an artificial or synthetic resin within Tariff Item No. 15A(1). It was also found, on the evidence, not to be a marketable commodity. Since marketability is an essential ingredient for excisability, an article not known to the market as goods does not attract excise duty merely because it may fall within the tariff description.

Conclusion: The dip solution was not liable to excise duty under Tariff Item No. 15A(1), and the assessee succeeded.

Ratio Decidendi: An article is not exigible to excise duty unless it is marketable goods, and a product falling within a tariff entry but lacking marketability is not dutiable.

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