In Brief
A manufacturer of agarbathi perfume (odoriferous compound) must pay excise duty on the product even though it may not be actively marketed. The Court held that the 1999 Board Circular, which exempted such compounds from duty when produced continuously as part of traditional agarbathi manufacture, does not apply to this respondent. The respondent separately manufactured liquid perfume concentrate in Bangalore and transported it to Mysore for application to agarbathis. This practice, combined with the respondent's sale of some concentrate to a third party, demonstrated marketability. The Court affirmed that marketability—not actual sales—determines excisability, and the perfume falls within tariff Chapter 3302.90. The respondent's appeals were allowed and CESTAT's order set aside.
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