Whether the mere fact that the intermediate goods are being moved from one premises to another, is sufficient to prove that the goods are marketable and hence liable to excise duty?

In the present decision, honorable tribunal has held that to prove the marketability, department has to demonstrate substantial evidences to prove that goods are marketable and hence excisable.

If department failed to prove marketability, no duty of excise is leviable.

(See full judgment - 2007 -TMI - 1573 - CESTAT,MUMBAI)

Marketability of goods determines excise liability; absence of evidence showing marketability precludes imposition of excise duty. The tribunal held that mere movement of intermediate goods between premises does not alone establish marketability; the department must produce substantial evidence that the goods are marketable to attract excise duty, and absent proof of marketability no excise levy can be sustained.