M/S. HINDUSTAN ZINC LTD. vs COMNR. OF CENTRAL EXCISE, JAIPUR

The Supreme Court, in this civil appeal under Section 35L(b) of the Central Excise Act, 1944, determined that the silver chloride produced by the assessee is not marketable and thus not liable for excise duty. The Court established that for an item to be classified as 'goods' under excise law, it must be both manufactured and commercially marketable, citing precedents such as Moti Laminates Pvt. Ltd. v. Collector of Central Excise and others. The Court held that the silver chloride produced was merely a residue with insufficient purity and marketability to be considered excisable goods, leading to the dismissal of the department's claims.