"An item of excisability must necessarily pass the test of marketability." Do you agree? How the marketability of excisable goods is being determined?

An item of excisability must necessarily pass the test of marketability. Marketability means sale ability or suitability for sale of an item. The test of marketability is also known as vendibility test. Marketability is the acid test of excisable goods. Any event of manufacture resulting in goods must necessarily pass the test of marketability. It must be remembered that all goods are naturally movable but may not be marketable. Only those excisable goods manufactured can be subject to levy of excise, which are marketable. Since the prime purpose of manufacture is to sell, it is unthinkable of the manufacture of non saleable goods under the excise law. Right from DCM case, the Apex court has been consistently holding that for goods to be excisable, they must be marketable. However, actual sale is not required to impose excise duty. Since marketability means saleability or suitability for sale, goods fit for sale, use or consumption are marketable goods. Goods without commercial utility or economic value cannot be considered as marketable goods. The following are the important points regarding determining the Marketability Marketability is saleability and not necessarily actual sale. Even actual sale makes the goods marketable as per the amendment in 2008. Marketability is not dependent on nature or description of goods. Even intermediate goods, defective goods, waste/ scrap are marketable if they are saleable in their condition. Even goods of short shelf life are marketable if they are sold during their short life. Goods which cannot be identified in the market as goods are not marketable. Even a single buyer is enough to call the goods marketable. Marketability presupposes movability. Goods which are not movable are not marketable for the purpose of excise. To be marketable, goods must be capable of being brought to the market to be bought and sold. Marketability is a question of fact to be decided in each case. Goods specified In Tariff Act do not automatically qualify for marketability. It is to be proved independently that the goods are also marketable. When marketability is in dispute, the burden of proof lies on the department. Excisability from the point of levy shall be necessarily marketable. Marketability refers to goods with a distinctive name, character or use with economic value to be bought and sold.