9911796707
TMI Blog1998 (3) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been heard together. 2. Ld. DR has drawn attention to the Board s order directing filing of these appeals and the grounds of appeal. According to ld. DR, the Collector has heavily relied upon Board s instructions circulated under F. No. 126/4/89-CX. 3, dated 5-9-1989 (Circular No. 51/89-CX. 3) which clarifies about the excisability of coating solution/coating paste prepared by paper manufacturing mills for captive consumption. This product is used for finishing the paper manufactured by paper industry. Whereas the product under reference is used as prepared glue or adhesive for pasting one layer of paper on the other; rolled on the fibre drum till the required thickness is achieved. Thus the assessee s products viz., Cepol D.V. (Speci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cepol DV and Movicoll T is more on the issue of its marketability rather than other factors namely :- (i) Change in the definition of manufacture under Section 2(f) of the Act. (ii) ........ (iii) Tribunal s judgment in the matter of M/s. Dhoto Printers (P) Pvt. Ltd. - 1987 (31) E.L.T. 793 (Tribunal) No difference is made to the liability of the product if such product is meant for and consumed by the manufacturer himself and is not actually sold in the market. Marketability is essential to excisability, but actual marketing is not. When a manufacturer is producing a commercial product for his own requirements and specifications, he cannot claim exemption from excise duty - on the ground that product in question is not saleable i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they have a limited shelf life they cannot be considered to be goods falling under respective Tariff Items under the Central Excise Tariff Schedule. It is well known that many drugs and medicines have limited shelf life and lose their potency. That however does not make them any less drugs and medicines. They would fall under the relevant items of the Central Excise Tariff, of course, subject to the express words employed in the item. If a particular product has a tailor-made composition or construction that is no reason to hold that it would not attract classification under the relevant Central Excise Tariff item even if, for the very reason that it is tailor-made it has no regular market. The fact that the product in question is stable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which it has not only been mentioned that the adhesive paste/glue which was prepared showed a change in property, inter alia, reducing its adhesive characteristics within 24 hours and if it had to be used it required re-mixing in the same manner but also that is was unstable, had a short shelf life, was not marketable in that state and was also not marketed. The department has not challenged the correctness of this test report. In the circumstances, the authorities below were right in taking the same into account and once it is so established that it was neither stable nor marketable in that state it could not be considered as excisable in that form, in view of the settled position in law. The departmental side has cited a number of cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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