Explanation to Sec (2d) introduces the concept of 'deemed marketability'- by providing that 'goods' include any article, material or substance which is capable of being bought & sold for consideration and such goods shall be deemed to be marketable. However, In CCEx V Dhakad Metals Pvt Ltd. (2010) 257 elt E139 (sc), held that – Copper Sldge arising in the process of manfacture of zinc sulphate (agricultural grade) is a ‘waste’. Merely because that can be sold in the market, it doesn’t become marketable; as marketability of product totally different from disposal of waste. My Q. is that since waste is realising consideration , hence by explanation to sec 2(d) it should be deemed marketable whereas SC has different view. Which is more correct ?
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Explanation to Sec 2(d) and SC
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in view of excise, the bye products has two type of destination, 1) disposal by way of sales, 2) disposal by way of destruction, former is applicable if it carry transaction value and appopriate rates of duties and taxes are paid, while the later is subject to destruction in "supervision" of R/O.
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