1996 (2) TMI 225

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..... 4-95% alcohol and the remaining percentage is only water. This product as such is not suitable for use as fuel either by itself or in a mixture with other substance. The product, therefore, is not leviable to any duty under Central Excise Tariff Item 22.04. He submits that in their own case which was heard as Appeal No. : E/4508/93-D along with other Appellants, the Tribunal in the case of Cellulose Products of India Ltd. Others v. Collector of Central Excise, Vadodara - 1996 (82) E.L.T. 147 (Tri.) = 1996 (12) R.L.T. 421 held that rectified spirit is not leviable to duty as it is not suitable for use either by itself or in at a mixture with any other substance as fuel. In that Appeal the demand related to the period July, 1983 to 1987. Th .....

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..... nd as defined in Black s Law Dictionary Legal Thesarus by William C Burton and Butter C Worth s Words and Phrases Legally Defined have been furnished by the appellants. Out of these, we find that in the last mentioned publication it has been mentioned that the term suitable has been judicially determined to mean actually, practically and commercially fit for the use described. The reference is shown as Matton Co. v. U.S. Cust. Ct. 297 F Supp 1404, 1406. In another judgment, Sol. Kahaner Bro. v. US Cust. Ct. 372F. Supp 1393, 1396. It had been held that for an item to be suitable for a particular purpose within meaning of Tariff Act, the merchandise need not be chiefly used for a stated purpose but there must be evidence of more than .....

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..... ty of the product later on without the product undergoing any change in itself, the Ld. Advocate replied that in such circumstances, the marketability would decide the exigibility. The product at present is not marketable as fuel but at a later date with change in technology and change in Law also, the practice may change which may put ethyl to such use and in such a situation, the context of the matter would change and it could be subject to duty, assuming the same heading as existed before amendment continued. We are in agreement with this proposition. 9. Following the ratio laid down in the case reported in 1996 (82) E.L.T. 147 (Tri.) = 1996 (12) R.L.T. 421, we therefore set aside the impugned orders and allow both the appeals. - - .....

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