Case Note & Summary
The case involved an appeal by the assessee regarding the levy of excise duty on C.I.castings, which were claimed to be intermediary products in the manufacturing of C.I.Chilled Rolls. The assessee contended that these castings were not marketable and thus should not attract excise duty. A show cause notice was issued alleging that the assessee was liable to pay excise duty on the castings under chapter heading 7207.10. The adjudicating authority found that the castings were capable of being sold in the market, which was reiterated by the appellate authority. However, the Tribunal did not make a finding on the marketability of the castings. The counsel for the assessee conceded that if the castings were found to be marketable, excise duty would be applicable. The Supreme Court noted the absence of a finding on marketability by the Tribunal and stated that it was unable to proceed further without this determination. Consequently, the court accepted the appeal, set aside the Tribunal's order, and remitted the case for a fresh decision on the marketability of the C.I.castings, leaving all contentions open.
Headnote
A) Excise Law - Marketability of Intermediary Product - Excise Duty Liability - Central Excise Act, 1944, Section Not mentioned - The court held that excise duty could not be levied on the intermediary product C.I.castings without a finding on its marketability, as the final product C.I.Chilled Rolls was exempt from excise duty. The case was remitted to the Tribunal for a fresh order considering the marketability of the intermediary product (Paras 1-3).
Issue of Consideration
Whether excise duty could be levied on the intermediary product C.I.castings in the absence of a finding regarding its marketability.
Final Decision
The Supreme Court accepted the appeal, set aside the Tribunal's order, and remitted the case for a fresh order regarding the marketability of C.I.castings.
Law Points
- Excise duty
- marketability
- intermediary product
- exemption notification
- classification
