Marketability as a condition for excisability defeated duty on hypo-solution prepared for immediate use.

Marketability is a necessary condition for excisability, and a specially formulated hypo-solution prepared for immediate use with a very short shelf life was held not to be marketable as goods. On that basis, it could not be treated as excisable goods under Heading 3707, and the departmental reliance on chemical composition and the Chief Chemist's opinion did not overcome the absence of evidence of a commodity capable of being bought and sold. The discussion also noted the claimed benefit of Notification No. 217/86-C.E., but the decisive finding was non-dutiability for want of marketability.

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Issues: Whether hypo-solution was marketable excisable goods chargeable to duty under Heading 3707, and whether the benefit of Notification No. 217/86-C.E. was available.

Analysis: The decisive requirement for excisability is that the product must be marketable as goods. The material on record supported the finding that the hypo-solution was prepared for immediate use, had a very short shelf life, and was not shown to be a commodity capable of being bought and sold in the market. The departmental reliance on the chemical composition of the product and the Chief Chemist's opinion did not displace the finding on non-marketability. In the absence of evidence establishing marketability, the product could not be treated as excisable goods merely because it was a specially formulated solution.

Conclusion: Hypo-solution was not excisable goods under Heading 3707, and the assessee's case succeeded on the issue of dutiability.

Final Conclusion: The appeals failed and the orders holding the product non-dutiable were left undisturbed.

Ratio Decidendi: Marketability is an essential condition for excisability, and a product prepared for instant use with no established marketability cannot be treated as excisable goods merely because of its composition.

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