Marketability of slightly impure acetylene confirmed for excise classification under Tariff Item 14H despite captive consumption.

Slightly impure acetylene gas produced in a continuous process and captively consumed within the factory remained marketable and therefore constituted excisable goods. Commercial recognition, transportability and industrial use supported marketability, while the presence of traces of impurities did not defeat classification. Tariff Item 14H covered acetylene whether dissolved in water or not, so the physical condition of the gas was immaterial. ISI specifications were treated only as quality indicators, not as conclusive tests of whether the product was goods, and purity percentage was not the governing criterion. The gas was correctly classifiable under Tariff Item 14H.

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Issues: Whether acetylene gas produced in a continuous process, containing traces of impurities and used captively within the factory, was marketable and therefore goods classifiable under Tariff Item 14H.

Analysis: The material on record, including the technical literature relied upon by the respondent itself, showed that slightly impure acetylene continues to be recognised commercially as acetylene, can be transported and marketed for industrial use, and satisfies the marketability test. The fact that the gas was not dissolved in water did not matter because Tariff Item 14H specifically covered acetylene whether in dissolved condition or not. ISI specifications were only indicative of quality and were not conclusive of whether the product was goods, and the percentage of purity was not the governing criterion for classification. The circumstance that the gas was generated in a continuous process and captively consumed also did not alter its excisable character.

Conclusion: The acetylene gas was goods, was excisable, and was correctly classifiable under Tariff Item 14H; the appeal succeeded.

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