Marketability in excise turns on trade capability, and rough rolled zinc forms were classifiable as zinc sheets.

Rough rolled flat forms of zinc were treated as marketable because marketability depends on whether goods are capable of being bought and sold in the relevant trade, not on proof of actual sales. The evidence showed the product was understood in the dry-cell battery trade as zinc sheet and could be rolled elsewhere for use as such, while contrary affidavits were insufficient to displace that showing. On that basis, the product also fell within Tariff Item 26B(2), which covered plates, sheets, circles, strips and foils in any form or size, so captively consumed and unfinished goods remained dutiable as zinc sheets.

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Issues: (i) Whether the rough rolled flat forms of zinc were marketable goods; (ii) Whether the rough rolled flat forms of zinc were classifiable and dutiable as zinc sheets under Tariff Item 26B(2).

Issue (i): Whether the rough rolled flat forms of zinc were marketable goods

Analysis: The decisive inquiry was whether the product had marketability on the evidence already on record. The majority held that actual sale was not necessary, and that marketability is to be judged pragmatically on the basis of whether the goods are capable of being bought and sold in the relevant trade. The appellant's own letter showed that the product could be rolled elsewhere and used as zinc sheets for battery manufacture. The evidence also indicated that the product was understood in the dry-cell battery trade as zinc sheet and had propensity to be marketed, even if not generally marketed for household or broad commercial uses. The contrary affidavits were treated as insufficient to displace the Revenue's evidence of marketability.

Conclusion: The product was held to be marketable, against the assessee.

Issue (ii): Whether the rough rolled flat forms of zinc were classifiable and dutiable as zinc sheets under Tariff Item 26B(2)

Analysis: Tariff Item 26B(2) covered plates, sheets, circles, strips and foils in any form or size. Once the product was found to be marketable as zinc sheet in the relevant trade, its rough, unfinished condition and captively consumed character did not take it outside the tariff entry. The majority applied the principle that tariff classification turns on the statutory description and commercial understanding, not on a requirement of fine finish or general market availability. On that basis, the product fell within the wide wording of the tariff entry.

Conclusion: The goods were held classifiable as zinc sheets under Tariff Item 26B(2) and liable to excise duty, against the assessee.

Final Conclusion: The majority held that the rough rolled flat forms of zinc were excisable as zinc sheets in any form or size, so the appeal failed.

Ratio Decidendi: For excise classification, a product is marketable if it is capable of being bought and sold in the relevant trade, even if not generally marketed or captively consumed, and a tariff entry covering goods in any form or size is attracted by a product answering that commercial description.

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