Marketability must be proved on evidence for excise duty, and tariff entry alone cannot establish exigibility.

Marketability of an intermediate product for excise purposes must be proved independently on the evidence and cannot be presumed merely because the product appears in the tariff; the Tribunal had not examined the evidence properly, so the finding on exigibility was set aside and remitted. Classification under Tariff Item 15A(1)(ii) also required fresh consideration because the existing reasoning was insufficient for a final determination, so that issue was likewise remitted. The finding on limitation was left undisturbed.

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Issues: (i) Whether the intermediate product was marketable so as to be exigible to excise duty; (ii) whether the intermediate product fell within Tariff Item 15A(1)(ii).

Issue (i): Whether the intermediate product was marketable so as to be exigible to excise duty.

Analysis: Marketability cannot be assumed merely because a product is mentioned in the tariff. The question has to be decided on the evidence adduced by both sides, and the evidence relied upon by the Revenue and the assessee must be assessed together. Since the Tribunal had not examined the evidence on marketability, the finding could not be sustained.

Conclusion: The issue of marketability was remitted to the Tribunal for fresh consideration.

Issue (ii): Whether the intermediate product fell within Tariff Item 15A(1)(ii).

Analysis: The reasoning on classification was not sufficiently detailed for a final determination. One view had directed remand, while the other view treated the product as falling within the tariff entry without an adequate analysis. In these circumstances, the question of classification also required reconsideration by the Tribunal.

Conclusion: The issue of classification under Tariff Item 15A(1)(ii) was remitted to the Tribunal.

Final Conclusion: The Tribunal's decisions were set aside and the matters were sent back for fresh adjudication on marketability and classification, while the existing finding on limitation was left undisturbed.

Ratio Decidendi: Marketability of an excisable product must be independently proved on evidence and cannot be presumed solely from tariff specification.

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