Tribunal rejects Revenue appeals on excise duty for Green Sand & Core Sand: Unique products not excisable.

The Tribunal rejected all appeals filed by the Revenue, ruling that Green sand, Core sand Resin Bonded core, and Sodium Silicate Bonded coats are not excisable goods subject to duty under the Central Excise Act. The decision was based on the lack of evidence supporting marketability, the unique nature of the products compared to resin coated sand, and precedent regarding duty exemption for resin coated sand used captively in manufacturing sand moulds. The Tribunal upheld the Collector's findings, emphasizing the short lifespan of the products and the insufficiency of evidence to establish marketability.

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Issues:
- Whether Green sand, Core sand Resin Bonded core, and Sodium Silicate Bonded coats are excisable goods leviable to duty under the Central Excise Act.

Analysis:
1. Issue 1 - Excisability of the Products:
The appeals involved the question of whether the products, namely Green sand, Core sand Resin Bonded core, and Sodium Silicate Bonded coats, are excisable goods subject to duty under the Central Excise Act. The Respondents were engaged in manufacturing "Prepared Sand" used for sand moulds and cores in casting. The Collector issued show cause notices demanding duty on the grounds that the products fall under Heading 68.07 of the Central Excise Tariff Act. However, the Collector, in the impugned order, ruled that the sands in question were not marketable due to their short lifespan, citing relevant judgments and references.

2. Issue 2 - Marketability of the Products:
The central point of contention was the marketability of the products. The Revenue argued that the products were marketable based on the Government Engineering College's procurement of Green Sands. However, the Tribunal emphasized that marketability is a crucial test for dutiability, requiring the product to be capable of being sold or suitable for sale. The Tribunal noted the lack of evidence from the Revenue to establish the products' reasonable shelf life for marketability. The Collector's findings were upheld, stating that mere procurement by the College was insufficient evidence of marketability.

3. Issue 3 - Comparison with Resin Coated Sand:
The Respondents argued that the products were distinct from resin coated sand and highlighted the lack of coating in Green sand, which deteriorates rapidly after preparation. Reference was made to a previous decision regarding resin coated sand not attracting duty when used captively in manufacturing sand moulds. The Tribunal agreed that the resin coated sand case was not directly applicable to the present matter, supporting the Respondents' claim regarding the unique nature of the products in question.

4. Final Decision:
After thorough analysis and consideration of arguments from both sides, the Tribunal rejected all the appeals filed by the Revenue. The decision was based on the lack of evidence supporting the marketability of the products, the distinct nature of the products compared to resin coated sand, and the precedent regarding duty exemption for resin coated sand used captively in manufacturing sand moulds. The Tribunal's decision upheld the Collector's findings and concluded that the products in question were not excisable goods subject to duty under the Central Excise Act.

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