Marketability as a condition for excise duty was decisive where manufacture alone did not sustain the levy.

Marketability is an essential ingredient of excisability, so excise duty on PVC compound granules cannot be sustained on proof of manufacture alone. The Supreme Court noted that goods must ordinarily be capable of being bought and sold, and that marketability is a factual issue requiring a finding on the evidence in each case. Because the Tribunal recorded manufacture but did not find that the granules were marketable or saleable, the levy was held infirm and the matter was remitted for fresh consideration on marketability.

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Issues: Whether marketability is a prerequisite for levy of excise duty on the PVC compound granules produced by the assessee, and whether the absence of a finding on marketability vitiated the order under appeal.

Analysis: Excise duty under the charging provision attaches to excisable goods, and goods must be something that can ordinarily come to the market to be bought and sold. Marketability is an essential ingredient of dutiability and is a question of fact to be determined on the evidence in each case. The Tribunal had recorded findings on manufacture, but it had not recorded any finding that the PVC compound granules were marketable or saleable. In the absence of such a finding, the levy could not be sustained merely on the basis that a process amounting to manufacture had taken place.

Conclusion: Marketability was held to be a necessary condition for levy of excise duty, and the absence of a finding on that issue rendered the Tribunal's order infirm.

Final Conclusion: The matter was sent back for fresh consideration because the record lacked the required finding on marketability.

Ratio Decidendi: For excise duty to be leviable, the product must be marketable, and a finding of manufacture alone is insufficient unless the goods are shown to be saleable or suitable for sale.

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