Marketability is essential for excise duty, and dip solution not shown as a saleable resin was not dutiable.

For excise levy, an article must fall within the tariff description and also be marketable as goods. The dip solution used in tyre manufacture was held not to be an artificial or synthetic resin under Tariff Item No. 15A(1), and the evidence showed it was not known in the market as a saleable product. Because marketability is an essential ingredient of excisability, the dip solution was not liable to excise duty and relief to the assessee was sustained.

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Issues: Whether the dip solution used in tyre manufacture fell within Tariff Item No. 15A(1) as an artificial or synthetic resin and, if not otherwise excluded, whether it was liable to excise duty despite its alleged lack of marketability.

Analysis: Tariff Item No. 15A(1) covered artificial or synthetic resins and related plastic materials. The dip solution was found not to be an artificial or synthetic resin and, on the evidence, not a marketable commodity. Marketability was treated as an essential ingredient for excisability, and the material placed on record did not displace the respondents' evidence that the dip solution was not known to the market as a saleable product.

Conclusion: The dip solution did not attract excise duty under Tariff Item No. 15A(1), and the finding of non-liability was upheld in favour of the assessee.

Final Conclusion: The appeal failed, and the order granting relief to the respondent-company was sustained.

Ratio Decidendi: For excise levy, the article must not only fall within the tariff description but must also be marketable and known to the market as goods.

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