Marketability requirement for excisability defeated duty on rigid polyurethane foam where the department failed to prove marketable goods.

Rigid polyurethane foam was treated as non-excisable because marketability is an essential condition for excisability under the Central Excises and Salt Act, 1944. The Tribunal followed its earlier rulings on the same product and held that, since the department had not proved the goods were marketable, the foam could not be subjected to duty. The issue was therefore decided in favour of the assessee and against the Revenue.

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Issues: Whether rigid polyurethane foam manufactured by the appellants is excisable goods chargeable to duty under the Central Excises and Salt Act, 1944.

Analysis: The Tribunal followed its earlier decisions on the same product and applied the principle that marketability is an essential ingredient for excisability. As the department had not established marketability of the goods, the product could not be treated as excisable.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

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