2000 (11) TMI 913 - AT - Central Excise

Summary

Issues:
1. Duty demand on manufacturers of wagons for consuming parts captively.
2. Whether the parts consumed in manufacturing wagons were marketable and excisable.

Analysis:
1. The case involved a duty demand on manufacturers of wagons for consuming parts captively in the manufacture of wagons exempted from duty. The appellants argued that the parts consumed were not identifiable as wagon parts and were not marketable. The Commissioner held that marketability is essential for excisability and remanded a similar case for further consideration. The Tribunal disagreed with the Commissioner's view that marketability is irrelevant and remanded the matter for a decision on the marketability of the alleged parts.

2. The key issue revolved around whether the parts consumed in manufacturing wagons were marketable and excisable. The appellants contended that the parts were not known or traded as wagon parts and were merely different stages of materials during wagon manufacture. The Commissioner disagreed, stating that marketability is crucial for excisability, even if the goods were not sold in the market but consumed captively. The Tribunal, citing a previous case, emphasized the importance of determining marketability and remanded the matter for the Commissioner to decide on the marketability of the alleged wagon parts after providing a hearing to the appellants. The appeal was allowed by way of remand, and the stay petition was disposed of accordingly.