Excise - Dutiability - Marketability - Burden of proof - Section 2(d) of the Central Excise 1944 (the Act) - Assessee, a manufacturer of footwear, manufactured double textured fabric, a rubberised, used as upper material in the manufacture of foot wear - According to the Revenue, double textured fabric marketable and hence, dutiable - Commissioner confirmed the demand and imposed penalty, which was upheld by the Tribunal - Whether textured fabric assembly produced in the Assessee's factory and captively consumed can be termed as 'goods'?
Bata India Ltd. v. Commissioner of Central Excise, New Delhi (Decided on 12.04.2010) (MANU/SC/0243/2010)
Held, impugned product is used as an intermediate product, which is used as a component for the final product. Burden to show that the impugned product is marketed or capable of being bought or sold in the market so as to attract duty is entirely on the Revenue. Assessee has produced sufficient materials to establish that the material used by the Assessee is not marketable and has no commercial identity. Further, vide Notification No. 143/94-Central Excise dated 7th December, 1994 impugned goods stands exempted if captively used for the manufacture of exempted footwear. Impugned Order set aside. Appeal allowed.
