1996 (4) TMI 253

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....ng for the Revenue, the ld. DR submits that the respondents manufacture a variety of chocolate called "Krisp". The respondents in the manufacture of this product use `wheat flour sheet' as one of the ingredients and claim exemption under Not. No. 118/75 by seeking the classification of product under Tariff Item 68 in place of T.I. 1-C. Collector (Appeals) held that the product under consideration is neither bought nor sold in the market as biscuits. It did not conform to the meaning of biscuit as normally understood. The product is not known as a biscuit and is also not available in the market. The product is classifiable under Tariff Item 68 and because of captive consumption within the factory it is entitled for the benefit. Dictionary me....

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....case, once the averment is made that the product is not marketable, the onus to prove that the product in fact is marketable is on Revenue and in support of his contention he cites the case 1986 (24) E.L.T 169. He submits that wheat flour sheets as manufactured by them do not conform to ISI Specifications. These do not contain any sugar, essence or flavour. These are not known in the market as biscuits. They are not capable of being marketed as biscuits. The trade opinion, in fact, clearly states that the product is neither a tin biscuit nor a biscuit taking into consideration the size and shape, considering quality and other commercial parlance of the said product. The trade opinion also indicates that the product is not bought and sold in....

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....t is not sold in the market or not known to the market it will not get debarred from classification under T.I.-1C of Central Excise "in view of the submissions at Sl. No. 2 above". Sl. No. 2 deals with definition of the biscuits as given in the dictionary. We are afraid, we are not able to persuade ourselves to accept that this indeed is the correct position in law. The goods will have to be assessed in the light of how the people who deal with these goods understand them. The trade opinion as well as ISI Specifications clearly indicate that the impugned goods are not biscuits which are known in the market as such. The Respondents made an averment before Asstt. Collector and cited the trade opinion before him that the goods are not marketab....