M/S Hindustan Zinc Limited vs Commissioner Of Central Excise Jaipur

The Supreme Court determined that the silver chloride produced by the assessee is not marketable and thus does not qualify as excisable goods under Section 3 of the Central Excise Act, 1944. The court emphasized that for an item to be subject to excise duty, it must be both manufactured and commercially marketable, citing precedents such as Moti Laminates Pvt. Ltd. v. Collector of Central Excise and Cadila Laboratories Pvt. Ltd. v. Commissioner of Central Excise. The court held that the silver chloride produced was merely a residue with insufficient purity and marketability, leading to the dismissal of the department's claim for excise duty.