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TMI Blog2007 (5) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... Chloride, (3) Yellow Salt of Platinum, (4) Yellow Salt of Palladium, (5) Red Salt of Platinum and (6) Ruthenium Oxide 3. The Revenue is seeking to charge excise duty on the above products on the ground that the above said products are intermediate products consumed in the manufacture of exempted product by the appellant in the factory. The appellant company resisted the excisability of the product on the ground that they are not marketable. The learned adjudicating authority while arriving to conclusion that the intermediate products are excisable held as under: The products involved in the present case are Gold Chloride, Silver Chloride, Yellow Salt of Platinum, Yellow Salt of Palladium, Red Salt of Platinum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and metal content of their products have the same purity and metal content as that of the goods offered on the website. There is no dispute that the products involved do contain precipitations /compounds of precious metals. As such they would definitely have some value corresponding to their precious metal content. It would be absurd, even for a person from a totally uncommercial background to accept that a product that contains precious metals cannot be marketed. Therefore, simple logic would dictate that they would have some sale value. Merely because they have lower purity and lower metal content, these intermediates would not become worthless. Assuming that the content of the products offered for sale on the websites are of higher puri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustan Zinc Ltd. v C.C.E., Indore as reported at 2005 (181) E.L.T. 170 (S.C.). He also submits that the entire show cause notice is time barred. it is his submission that the authorities had recorded the statements of officers of the appellant company, in an earlier case and they are aware that intermediate products were coming into existence during the course of manufacture of final product. 5. Learned authorized representative appearing on behalf of the Revenue submits that as regards the marketability of the intermediate products it is proved beyond doubt that the appellant had in their own website advertised for the sale of the very-same products which are captively consumed. He submits that in respect of Gold Chloride, the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product and hence the appellants have to discharge the duty on the intermediate product consumed by them in their factory premises. It is his submission that the appellant had suppressed the fact it that intermediate product emerges during the course of manufacture and hence the show cause notice invoking extended period of time is correct and the question of timebar does not arise in this case. 6. Learned Counsel in his rejoinder submits that gold chloride solution which is cleared on payment of duty by the Ahmedabad unit of the appellant is on 'stock transfer' for the manufacture of further final products. It is his submission that the gold chloride solution which emerges as a intermediate product in the appellants factory is of impure q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would itself indicate that the said goods (gold chloride solution) were sent on stock transfer from Ahmedabad unit to the appellants unit. This would indicate that the said gold chloride was to be consumed by the appellants in their further manufacturing process. This is not positive evidence of the marketability of the product, for the reason that the Revenue not rawn any sample of the intermediate product gold chloride which emerges in the manufacturing stream of the appellant. In the absence of any test report indicating that the intermediate product gold chloride (which emerges in the appellants' factory is the same as is being received by them from their Ahmedabad unit, the duty on the gold chloride which is emerging as intermediate pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old that the department has failed to prove the test of marketability." It can be noticed from the above reproduced portion of the judgment of the Hon'ble Supreme Court, it is for the revenue to adduce evidence of marketability of the intermediate products in the form in which they are consumed and in the current appeal before us the Revenue has not made any efforts to ascertain whether intermediate product gold chloride which arises during the course of manufacture of appellants' final products has a market, as such. In the absence of any such evidence we are unable to sustain the impugned order on merits. 9. The case laws relied upon by the authorized representative would be of no much help as the judgment of the Hon'ble Supreme Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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