Excisable goods and marketability upheld for factory-made boxes and pallets; unsupported job-work claims could not defeat excise duty.

Boxes and pallets made from rejected axles were treated as excisable goods because they emerged from manufacture, had a distinct commercial identity, and marketability was shown by evidence that pallets were purchased in the market. The duty challenge on the basis that the goods were made by job workers also failed, as no evidence showed independent manufacture by third parties and the goods were found to have been made in the appellants' factory. Excise liability was therefore sustained against the appellants.

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Issues: (i) whether the boxes and pallets manufactured from rejected axles were excisable and marketable goods liable to central excise duty; (ii) whether the appellants could avoid duty on the plea that the goods were manufactured by job workers and not by them.

Issue (i): Whether the boxes and pallets manufactured from rejected axles were excisable and marketable goods liable to central excise duty.

Analysis: The goods were not disputed to have been manufactured. They were made from rejected axles, used for transporting material within the factory, and were known as boxes and pallets distinct from the broken axles. The record also indicated that pallets had been purchased from the market, supporting marketability.

Conclusion: The boxes and pallets were held to be excisable goods with marketability established, and the plea against duty failed.

Issue (ii): Whether the appellants could avoid duty on the plea that the goods were manufactured by job workers and not by them.

Analysis: No evidence was produced to show that the alleged job workers were independent manufacturers. The goods were found to have been manufactured in the appellants' factory, and the job-work plea was unsupported.

Conclusion: The appellants were held to be the manufacturers and remained liable for duty.

Final Conclusion: The challenge to the excise liability was rejected and the appeals failed in their entirety.

Ratio Decidendi: Goods emerging from manufacture and known commercially by a distinct identity are excisable if marketability is shown, and a bare assertion of job work does not displace liability absent evidence of independent manufacture.

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