Marketability alone does not make lead ash excisable; manufacturing waste from galvanisation was held outside Central Excise duty.

Lead ash arising on the surface and corners of the lead bath during galvanisation was treated as waste resembling froth, dross, skimmings, scrap or similar residual material. Its occasional sale in the market did not change its character or make it excisable goods. The governing principle was that marketability alone does not convert manufacturing waste into goods liable to Central Excise duty, and lead ash was therefore outside the levy.

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Issues: Whether lead ash arising during galvanisation of iron and steel wires is goods liable to Central Excise duty.

Analysis: Lead ash was found to arise on the surface and corners of the lead bath during the galvanisation process, and its character was akin to froth, dross, skimmings, waste or scrap. Even though it was sometimes sold in the market, its emergence as waste in the manufacturing process did not make it goods for excise purposes. The principle applied was that marketability alone does not convert waste into excisable goods.

Conclusion: Lead ash is not goods for the purpose of levy of Central Excise duty.

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