1998 (5) TMI 141 - AT - Central Excise

Summary

Issues:
Whether 'Pigging Pots' and 'Roll Craddles' cast by the respondents for temporary use are liable to duty or not.

Analysis:
The central issue in this case is whether the items 'Pigging Pots' and 'Roll Craddles' are liable to duty. The respondents argue that these items are not marketable as they are roughly cast metal products used temporarily and ultimately remelted. The lower appellate authority accepted this argument, leading to the Revenue's appeal. The appellant contends that marketability, not actual marketing, determines excisability. However, the burden of proving marketability falls on the Revenue, as emphasized in various Supreme Court decisions cited by the respondent's counsel.

The key legal point revolves around the concept of marketability for excisability. The appellant asserts that the products are marketable due to being cast into definite shapes, even if the market demand is low. In contrast, the respondent argues that without concrete evidence of marketability, the products cannot be deemed excisable. The Tribunal's analysis focuses on the lack of evidence presented by the Revenue regarding the marketing of 'Roll Craddles' and 'Pigging Pots'. As per established legal principles, the burden of proving marketability rests with the Revenue, and in the absence of such evidence, the products cannot be classified as excisable goods.

The Tribunal's decision rests on the absence of proof of marketability by the Revenue. Despite the products being shaped and utilized by the respondents, the lack of evidence showing their marketing prevents them from being classified as excisable goods. By applying the legal principle that the burden of proving marketability lies with the Revenue, the Tribunal dismisses the appeals of the Revenue. Consequently, the products in question, 'Roll Craddles' and 'Pigging Pots', are deemed not liable to duty due to the failure to establish marketability.

In conclusion, the judgment emphasizes the crucial role of marketability in determining excisability. The case underscores the necessity for concrete evidence of marketability to classify products as excisable goods. The Tribunal's decision highlights the significance of the burden of proof in establishing marketability, as outlined in various Supreme Court precedents. Ultimately, the lack of evidence regarding the marketing of the items 'Pigging Pots' and 'Roll Craddles' leads to the dismissal of the Revenue's appeals.