Marketability test for excise duty prevails even where molten iron is specifically listed in the tariff.

Molten iron used captively in manufacturing ingot moulds, bottom steels and similar products was treated as not marketable and therefore not liable to central excise duty. The specific tariff entry for molten iron did not displace the basic excise requirement that goods must be marketable before duty can be levied. Relying on earlier Tribunal decisions, the demand was held unsustainable because the molten iron was used in-house at high temperature and lacked marketability. The duty demand was set aside and the assessee's appeal was allowed.

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Issues: Whether molten iron used captively in the manufacture of ingot moulds, bottom steels and similar products was marketable and therefore liable to central excise duty despite its specific mention in the tariff.

Analysis: The appeal was decided by following earlier Tribunal decisions which had held that molten iron at about 1300 C was not marketable and, on that basis, was not liable to duty. The specific tariff entry for molten iron did not alter the requirement that the goods must be marketable before excise duty could be levied.

Conclusion: Molten iron used captively in manufacture was not dutiable as it was not marketable, and the impugned demand could not be sustained.

Final Conclusion: The duty demand was set aside and the appeal was allowed in favour of the assessee.

Ratio Decidendi: Goods are not excisable merely because they are specifically mentioned in the tariff if they are not marketable.

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