M/S. THE INDIAN CABLE CO., LTD. CALCUTTA versus COLLECTOR OF CENTRAL EXCISE, CALCUTTA AND ORS..

M/S. THE INDIAN CABLE CO., LTD. CALCUTTA versus COLLECTOR OF CENTRAL EXCISE, CALCUTTA AND ORS..

Excise duty cannot be levied unless the goods are found to be marketable; the Tribunal erred by not entering a finding on marketability of PVC compound granules and justified the levy solely on the process amounting to manufacture.

Parties
Appellant: The Indian Cable Co., Ltd. Calcutta; Respondents: Collector of Central Excise, Calcutta and Ors.
Jurisdiction
India
Judgment Date
20 September 1994
Procedural Posture
Civil Appeal / Appeal From Order of the Customs, Excise and Gold (control) Appellate Tribunal, New Delhi
Outcome
Appeal disposed of; matter remitted to Tribunal.
Legal Topics
Classification Under Central Excise Act, Definition of Manufacture, Excisable Goods, Marketability as a Test for Excise Duty
Central Excise Law Classification Under Central Excise Act Definition of Manufacture Excisable Goods Marketability as a Test for Excise Duty

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 4 Authorities cited 11 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

The Indian Cable Co., Ltd. Calcutta

Appellant

Collector of Central Excise, Calcutta and Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Order of the Customs, Excise and Gold (control) Appellate Tribunal, New Delhi

Legal Issues

  1. 1 Whether PVC compound produced out of duty paid PVC resin is liable to excise duty
  2. 2 Whether the process amounts to manufacture within Section 2(f) of the Central Excises and Salt Act, 1944
  3. 3 Whether marketability is established as required for excise levy

Ratio Decidendi

Excise duty cannot be levied unless the goods are found to be marketable; the Tribunal erred by not entering a finding on marketability of PVC compound granules and justified the levy solely on the process amounting to manufacture.

Court Disposition

Appeal disposed of; matter remitted to Tribunal.

Orders

  • Order of Appellate Tribunal set aside.
  • Matter remitted for fresh consideration by Tribunal on the question of marketability.