Marketability requirement for excisability not met for carbide sludge arising from acetylene gas manufacture

Carbide (lime) sludge arising in the manufacture of acetylene gas was examined for excisability. The Tribunal found that the Department failed to prove the sludge was a marketable commodity, and marketability was treated as an essential attribute of excisable goods. On that basis, the sludge could not be classified as excisable, and the appeal was rejected.

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Issues: Whether carbide (lime) sludge arising in the manufacture of acetylene gas was an excisable commodity.

Analysis: The Tribunal had found that the Department failed to establish that carbide (lime) sludge was a marketable commodity. Marketability being a necessary attribute for excisability, the absence of proof on that aspect meant the product could not be treated as excisable goods.

Conclusion: The commodity was not excisable, as marketability was not established, and the appeal was rejected.

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