Case: Dharangadhra Chemical Works Ltd. and Ors Vs. Union of India (UOI) and Ors

3. The appellant-Company manufactures Trichloroethylene as the end product at its factory situate in Sahupuram (Tamil Nadu). In the process of manufacture of the said product Acetylene gas emerges. This Acetylene gas is in a crude form and is used by the assessee in the manufacture of the end product.

Reasoning:
Unfortunately, this contention of the assessee was not examined by the Central Government as well as the CEGAT in these two cases. This Court has in a recent judgment in Moti Laminates Pvt. Ltd. and Ors. v. Collector of Central Excise, Ahmedabad 1995ECR1(SC) clearly held that goods although covered by a Tariff Item, unless marketable or capable of being marketed, are not exigible to excise duty. It was, therefore, essential for the authorities below to record a clear finding on the question whether the Acetylene gas in the form in which it emerges and is used for captive consumption is marketable or capable of being marketed. Since there is no positive finding on this issue, we are left with no alternative but to remit the matters to the CEGAT for recording a finding on the said issue. We may state that no other question was raised before us by the learned Counsel for the assessee nor will the Tribunal be required to go into any other question.