In situ polyurethane foam inside finished articles was treated as non-excisable because it was not marketable.

Polyurethane foam formed in situ by the interaction of polyols and isocyanates within articles such as water jugs was treated as not amounting to manufacture. Earlier Tribunal decisions were followed on the basis that in situ formation inside the cavity of an article does not create excisable goods, and the foam's non-marketable character also kept it outside excisability. On that reasoning, the Revenue's challenge to the appellate orders failed.

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Issues: Whether polyurethane foam formed in situ by interaction of polyols and isocyanates within articles such as water jugs amounted to manufacture and was excisable.

Analysis: The matter was found to be covered by earlier Tribunal decisions holding that the in situ formation of polyurethane foam within the cavity of articles did not amount to manufacture. The non-marketable character of the end situ foam was also noticed, and goods that are not marketable do not fall within the purview of excisability.

Conclusion: The in situ polyurethane foam was not held to be excisable, and the Revenue's challenge to the appellate orders failed.

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