Collector Of Central Excise, Baroda vs United Phosphorus Ltd

The Supreme Court ruled that intermediate products, such as Mercuric Acetate, Para Chloro Phenyl Valeric Acid, and Chloro Synthemic Acid Chloride, are subject to excise duty only if they meet the criteria of marketability as established in prior cases, including Union of India Vs. Delhi Cloth and General Mills Co. Ltd. and Moti Laminates Pvt. Ltd. The Court emphasized that the burden of proof regarding the marketability of these goods lies with the department. The appeals by the Revenue were dismissed, upholding the decision of the Collector (Appeals) that these intermediate products were not excisable due to lack of marketability.