2008 (1) TMI 678 - AT - Central Excise

Summary

Issues: Classification of goods as marketable commodities for duty imposition.

In this judgment by the Appellate Tribunal CESTAT, KOLKATA, the issue revolved around the classification of goods as marketable commodities for duty imposition. The Bench observed during the Stay stage that the Department failed to demonstrate that the subject goods, Slide Chairs, were marketable, leading to the dispensation of duty and penalty until further orders.

The impugned goods, Slide Chairs, were used by the Appellants for manufacturing Turn Out Sleepers, a special kind of sleepers used in tracks where trains change course. The Appellants provided a certificate from the Research, Designs & Standards Organization stating that Slide Chairs were an integral part of Turn Out Sleepers and not a separate commodity. They argued that since Turn Out Sleepers were fully exempt from duty, Slide Chairs should also be exempt. The Department did not present any evidence regarding the marketability of the goods.

The Tribunal noted the absence of arguments from the Department regarding the marketability of the impugned goods. Consequently, they upheld the view that the goods were not marketable commodities and therefore not separately dutiable. As a result, the impugned order was set aside, and the Appeal was allowed. The judgment emphasized the importance of establishing the marketability of goods for duty imposition, highlighting the need for evidence in such cases to support the classification of goods.