Marketability test for site-fabricated ducts: goods arising only at installation site are not excisable.

Ducts fabricated only at the site of installation for heat ventilator and air-conditioning systems were found not to satisfy the test of marketability. Because marketability is a necessary attribute for excisability, goods that come into existence only at the installation site cannot be treated as excisable goods even if their emergence is linked to a manufacturing process. On that reasoning, the ducts were held not liable to excise, and the Revenue's challenge failed.

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Issues: Whether ducts fabricated during installation of heat ventilators and air-conditioning systems at site were marketable goods and therefore excisable.

Analysis: The ducts came into existence only at the site of installation. The finding accepted by the Tribunal was that goods emerging in this manner did not satisfy the test of marketability. Since marketability is a necessary attribute for excisability, the ducts could not be treated as excisable goods.

Conclusion: The ducts were held not to be excisable goods, and the Revenue's challenge failed.

Ratio Decidendi: Goods that come into existence only at the site of installation and fail the test of marketability are not excisable, even if they are argued to be the result of a manufacturing process.

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