2004 (2) TMI 534 - AT - Central Excise

Summary

Issues:
1. Whether laminated sheets with designs of carom, ludo, chess, etc. are liable to excise duty.

Analysis:
The appeal involved the question of whether laminated sheets with specific designs are subject to excise duty. The appellant, a manufacturer of various laminated products, argued that the sheets in question were solely for the manufacture of sport goods and not marketable as decorative laminated sheets. They contended that the process of manufacturing sport goods differed significantly from decorative laminated sheets. The Deputy Commissioner had previously ruled in favor of the appellant, stating that the sheets were not marketable as reported by shopkeepers. The appellant also cited relevant legal precedents to support their argument regarding marketability and classification under Chapter 95 of the Central Excise Tariff.

On the other hand, the Revenue argued that the laminated sheets, although used in the production of sport goods, were marketable as they could be sold in the market. They highlighted that the process of manufacturing these sheets was similar to that of decorative laminated sheets falling under a specific sub-heading. The Revenue emphasized that marketability did not require actual sales in the market, citing legal cases to support their stance on the definition of marketability.

Upon considering both arguments, the Tribunal noted that for goods to be excisable, they must not only be manufactured but also be marketable. The Revenue acknowledged that the appellant produced sport goods classified under a different heading. The Tribunal found merit in the appellant's argument that the laminated sheets with sport designs were not commonly known as decorative laminated sheets in the market. The Deputy Commissioner's previous finding further supported this claim, stating that shopkeepers did not purchase the sheets as decorative items. The Tribunal concluded that the Revenue failed to prove the marketability of the products, leading to the decision to set aside the impugned order and allow the appeal without delving into the extended period of limitation issue.

In summary, the Tribunal ruled in favor of the appellant, determining that the laminated sheets with designs of carom, ludo, chess, etc. were not liable to excise duty as they were not considered marketable as decorative laminated sheets in the trade. The decision was based on the lack of evidence provided by the Revenue to establish the marketability of the products, as highlighted by the Deputy Commissioner's earlier findings in the appellant's case.