1996 (11) TMI 88

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.... Court of Punjab & Haryana, Civil Writ No. 4459 of 1980 [reported in 1983 (12) E.L.T. 54 (P & H)], seeking an appropriate writ for declaring that friction cloth and intermediate products produced by them in the process of manufacture of T.R. Beltings/V. Belts and Conveyor Belts were not liable to excise duty under Item 19-I(b) of the Central Excise Tariff and for certain other incidental and conse....

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....on the intermediary product if the process of manufacture of the end product is composite, integrated and uninterrupted. At the same time he also contended that the intermediary product manufactured by the industries concerned, namely, friction cloth was a marketable commodity and hence it attracted excise duty. The Division Bench of the High Court in Paragraph 7 of the impugned judgment recorded ....

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....as having a market. It is, therefore, obvious that the Division Bench of the High Court proceeded on an erroneous assumption that it was nobody's case that this intermediary product was used or sold in the market. When it was contended by the Department that the product was a marketable commodity it was intended to convey that it had a market and was capable of being sold in the market. Unless the....