Marketability as of excisability: Soap Stock liability remanded for fresh determination after Revenue failed to prove marketability.

Soap Stock is excisable only if the Revenue proves marketability, meaning it is capable of being bought and sold in the market; mere inclusion in the tariff is insufficient to establish duty liability. The adjudicating authority had not examined the plea of non-excisability, and the appellate finding on marketability was unsupported by material. The matter was therefore remanded for fresh determination of marketability and excisability, with an opportunity of hearing to the assessee, leaving the substantive duty question open for reconsideration.

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Issues: Whether Soap Stock was marketable and therefore excisable, and whether the question of excisability required re-examination by the adjudicating authority.

Analysis: The adjudicating authority had not dealt with the plea of non-excisability at all, and the appellate authority had recorded a finding on marketability without reference to supporting material. The settled principle applied was that a product is excisable only if it is capable of being bought and sold in the market, and that the burden to prove marketability lies on the Revenue. Mere inclusion of a product in the tariff does not by itself establish marketability or liability to duty.

Conclusion: The question of excisability of Soap Stock was required to be re-examined by the adjudicating authority after giving the assessee an opportunity of hearing.

Final Conclusion: The matter was sent back for fresh determination on marketability and excisability, leaving the substantive duty question open for reconsideration.

Ratio Decidendi: A product is not excisable unless the Revenue proves that it is marketable, meaning capable of being bought and sold in the market; tariff enumeration alone is insufficient.

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