M/S. WHITE MACHINES vs COMMNR. OF CENTRAL EXCISE, DELHI

The Supreme Court held that excise duty cannot be levied on intermediary products unless they are marketable, as established in Union Carbide India Ltd. vs. Union of India and Gujarat Narmada Valley Fertilizer Co. Ltd. vs. Collector of Excise & Customs. The Court found that the Tribunal failed to record any finding on the marketability of C.I. castings, which are necessary to determine the applicability of excise duty. Consequently, the Court set aside the Tribunal's order and remitted the case for fresh consideration on the marketability issue.