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1996 (5) TMI 192 - AT - Central Excise
Issues:
Excisability of Calcium Citrate and Culture Media Analysis: The judgment revolves around the excisability of two products, Calcium Citrate and Culture Media. The appeal from the revenue challenges the ruling by the Commissioner of Central Excise (Appeals) upholding the decision that these products are not excisable goods. The process of manufacturing Citric acid from molasses is outlined in detail to provide context. The revenue argues that the presence of impurities does not exclude the products from excisability, citing relevant case laws. On the other hand, the respondents claim that the products are intermediate, impure, and not marketable, emphasizing marketability as a crucial criterion for excisability. Regarding Calcium Citrate, the Chemical Examiner's report shows that the sample is a mixture containing a percentage of Calcium Citrate, but it is deemed unstable and not marketable. The judgment references previous decisions emphasizing marketability as essential for excisability. The Supreme Court's stance on marketability as a prerequisite for levy of duty is highlighted, leading to the conclusion that the goods in question are not excisable due to their instability and lack of marketability. As for Culture Media, it is classified under a specific heading in the Tariff, indicating prepared culture media for the development of microorganisms. The judgment notes that marketability is crucial for products falling under this category. The respondents argue that the solution is unstable, impure, and not marketable. The Collector (Appeals) adopts the reasoning from another order, concluding that the goods are not excisable due to their instability and lack of marketability, supported by the absence of challenges from the revenue. Ultimately, the Tribunal upholds the decision that both Calcium Citrate and Culture Media are not excisable goods. The appeal from the revenue is rejected based on the findings related to marketability and stability of the products. The cross objection filed by the respondents is addressed and disposed of in the same order.
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