Marketability of site-cast sand blocks governed excise liability where no evidence showed market saleability.

Sand blocks cast manually at a project site, in sizes and shapes dictated by the construction work, were held not to be marketable goods because they did not conform to any standard commercial form and were used only for erection of the ash-bund. The department failed to prove that the product was known in the market or that market enquiries showed saleability. In the absence of evidence of marketability, the blocks could not be treated as excisable goods liable to central excise duty under Heading 68.07. Marketability was treated as an essential attribute of excisable goods, and the initial burden of proof rested on the department.

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Issues: Whether the sand blocks manufactured at the site were marketable goods liable to central excise duty under Heading 68.07 of the Central Excise Tariff Act, 1985.

Analysis: The blocks were cast manually at the project site in sizes and shapes dictated by the particular construction work, and they did not conform to any standard commercial form. Their use was confined to the execution of the contract for erection of the ash-bund, with no sale as such of the blocks to the project owner. The department also failed to discharge the initial burden of showing that the product was known in the market or that market enquiries established its saleability. In the absence of evidence of marketability, the product could not be treated as excisable goods.

Conclusion: The sand blocks were not marketable goods and were not liable to central excise duty.

Ratio Decidendi: Marketability is an essential attribute of excisable goods, and the initial burden lies on the department to prove that the product is known in the market and capable of sale.

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