Marketability of demineralised water turned on evidence of shelf life, and captive use alone did not prove it non-excisable.

Demineralised water was not shown to be non-marketable or non-excisable merely because it was used for captive consumption. The absence of evidence that the product was unstable, had only a very limited shelf life, or could not be brought to market meant the plea of non-marketability failed. Unsupported assertions that samples were not drawn or analysed did not displace the conclusion, as no technical material or literature established the claimed lack of shelf life. The product was therefore treated as capable of being marketed and not established as exempt from excise on that ground.

---

---

Issues: Whether demineralised water (conductivity water) was non-excisable on the ground that it had no shelf life and lacked marketability.

Analysis: No material was produced to show that the product was unstable or had only a very limited shelf life. The plea that samples were not drawn and analysed was unsupported by technical evidence or literature. Marketability does not require actual sale in the market if the product has enough shelf life and is capable of being brought to market. The fact that the goods were used for captive consumption did not, by itself, establish non-marketable character.

Conclusion: Demineralised water was not shown to be non-marketable or non-excisable; the objection failed against the assessee.

---