1999 (11) TMI 157 - AT - Central Excise

Prepared sand for sand moulds not subject to duty. Tribunal rejects Revenue's appeal due to lack of evidence.

The Tribunal upheld the decision that prepared sand used in sand moulds and cores should not be considered goods liable to duty. The impugned orders were ... Duty not leviable on such pre-paid sand Issues:Revenue's appeal against the finding of the learned Collector, Central Excise regarding the withdrawal of show cause notices for duty on prepared sand.Analysis:The appeals filed by the Revenue were against the finding of the Collector, Central Excise, who ordered the withdrawal of show cause notices related to the duty on prepared sand. The assessees were engaged in manufacturing prepared sand used in sand moulds and cores for casting. The Revenue alleged that prepared sand should be considered a manufactured product and duty should be paid on it. The Tribunal referred to a previous case where it was held that marketability is a decisive test for dutiability, emphasizing that the product should be capable of being sold without anything more. The Tribunal found no evidence to prove the marketability of the prepared sand in question. The Revenue's argument regarding the procurement of green sand by a college was dismissed by the Tribunal, stating that a single instance is not sufficient evidence of marketability. The Tribunal also noted that the resin coated sand case cited by the Revenue was not similar to the present case, and no evidence was provided to show that the products in question were the same as resin coated sand. The Tribunal concluded that the appeals filed by the Revenue were rejected based on the lack of material to prove the dutiability of the prepared sand.The respondents' counsel argued that the case was covered by a previous decision of the Tribunal, where it was held that prepared sand used in sand moulds is not liable to duty. The Revenue reiterated their grounds for appeal, but the Tribunal found that the facts in the present case were identical to the previous case referred to by the respondents. The Tribunal upheld the decision that prepared sand used in sand moulds and sand cores should not be considered goods liable to duty. Therefore, the impugned orders were upheld, and the appeals filed by the Revenue were rejected.