Marketability is essential for excise duty; tariff entry alone does not create liability without proof of a marketable product.

Intermediate yeast mixture produced by propagating purchased yeast with molasses and water was treated as a distinct intermediate product used in manufacturing potable alcohol, not as mere yeast under Heading 21.02. The record supported the finding that the process did not result in a marketable product. Even where a tariff entry exists, excise duty arises only if the Department proves that the goods are marketable or capable of being marketed. The burden of proving marketability rested on the Department, and it was not discharged; the alleged excisable product was therefore not liable to central excise duty.

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Issues: Whether the intermediate yeast mixture obtained by propagating purchased yeast with molasses and water was excisable under Heading 21.02, and whether the Revenue had proved that the product was marketable.

Analysis: The product in question was not the mere yeast referred to in Heading 21.02, but an intermediate liquid mixture used in the manufacture of potable alcohol. The Tribunal's finding that the process undertaken by the assessee did not amount to manufacture of a marketable product was supported by the record. Even where a product is specified in the tariff, duty does not arise unless the Department establishes that the goods are marketable or capable of being marketed. The burden to prove marketability lay on the Department, and that burden was not discharged.

Conclusion: The intermediate product was not shown to be marketable and was therefore not liable to central excise duty; the Revenue's challenge failed.

Final Conclusion: The appeals were rejected, and the departmental demand could not be sustained for want of proof of marketability of the alleged excisable product.

Ratio Decidendi: A tariff entry by itself does not attract excise duty unless the goods produced are shown to be marketable, and the burden of proving marketability rests on the Department.

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