COLLECTOR OF CENTRAL EXCISE, BARODA vs UNITED PHOSPHONUS 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 marketability test, as established in Union of India Vs. Delhi Cloth and General Mills Co. Ltd. (1997) and Moti Laminates Pvt. Ltd. Vs. Collector of Central Excise (1995). The Court emphasized that excise duty applies to goods that are distinct commodities known in the market, and mere production does not suffice for excisability. The appeals by the Revenue were dismissed, upholding the lower authorities' decisions that the intermediate products in question were not excisable due to lack of marketability.