BHOR INDUSTRIES LTD., BOMBAY vs COLLECTOR OF CENTRAL EXCISE, BOMBAY

The Supreme Court held that under the Central Excises and Salt Act, 1944, specifically Sections 2(d), 2(f), and 35-L, the burden of proof lies on the revenue to establish that goods are marketable to classify them as excisable. The Court ruled that the Crude PVC films produced by the appellant were non-marketable intermediate products used for captive consumption and thus not liable for excise duty under Item No. 15A(2) of the Central Excise Tariff Act, 1985. The Court upheld the Appellate Collector's decision that the films were not excisable, confirming the outcome of the lower tribunals.