2004 (3) TMI 697 - AT - Central Excise

Summary

Issues Involved:
1. Whether Tyre Bead Wire Rings manufactured by a company are chargeable to Central Excise duty.

Analysis:

Issue 1: Marketability of Tyre Bead Wire Rings

The main issue in this case was whether Tyre Bead Wire Rings manufactured by a company were chargeable to Central Excise duty. The Revenue contended that the Bead Wire Rings were marketable and hence dutiable, citing the example of another manufacturer discharging duty on similar products. The argument was supported by the assertion that the low shelf life of the products did not necessarily determine their marketability. On the other hand, the Respondent argued that the Tribunal had previously held that Bead Wire Rings manufactured by them and used in the manufacture of specific types of tyres were not marketable and, therefore, not excisable. The Respondent highlighted previous Tribunal decisions supporting their position.

Analysis of Judgment:
The Tribunal, comprising Members V.K. Agrawal and P.G. Chacko, carefully considered the submissions from both sides. They noted that a previous Final Order by the Tribunal had already addressed the marketability of the Bead Wire Rings manufactured by the Respondents and consumed internally. The Tribunal had concluded in the earlier order that these products were not marketable. The Commissioner (Appeals) in the current case had relied on this previous Tribunal decision, and the Tribunal found no fault with this approach. Consequently, the Tribunal upheld the decision of the Commissioner (Appeals) and dismissed the appeal filed by the Revenue. The judgment reinforces the principle that marketability is a crucial factor in determining the excisability of goods, as established through previous Tribunal decisions and upheld in the present case.

This detailed analysis of the judgment showcases the significance of past decisions and the application of legal principles in resolving disputes related to Central Excise duty liability.