Goods must be movable and marketable :
The item must be such that it is capable of being bought or sold. This is the test of ‘Marketability’. The goods must be known in the market. Unless this test of marketability is satisfied, these will not be goods. This view, expressed in UOI v. Delhi Cloth Mills – AIR 1963 SC 791 = 1963 (Suppl.) (1) SCR 586 = 1977 (1) ELT (J 177) (SC 5 member Constitution bench), has been consistently followed by Supreme Court in subsequent cases and by all High Courts. It was held that to become ‘goods’ an article must be something which can ordinarily come to market to be bought and sold.
Some important judgments where test of ‘marketability’ is upheld are : South Bihar Sugar Mills Ltd. v. UOI – 2 ELT (J336) (SC) = AIR 1968 SC 922 = (1968) 3 SCR 21 * A P State Electricity Board v. CCE – 1994 (2) SCC 428 = 70 ELT 3 (SC) = 95 STC 595 (SC) * Union Carbide India Ltd. v. UOI – 24 ELT 169 (SC) = 1986 (2) SCR 162 = AIR 1986 SC 1097 = 64 STC 444 = (1986) 2 SCC 547 (SC 3 member bench) * Bhor Industries Ltd. v. CCE – 40 ELT 280 = AIR 1989 SC 1153 = (1989) 1 SCC 602 = 184 ITR 129 = 73 STC 145 = (1989) 1 SCR 382 * Hindustan Polymers v. CCE – 43 ELT 165 (SC) = (1989) 4 SCC 323 = AIR 1990 SC 1676 * Moti Laminates (P.) Ltd. v. CCE 76 ELT 241 (SC) = (1995) 3 SCC 23 = 1995 AIR SCW 2035 =7 RLT 1 (SC) – 3 member bench.* Porritts and Spencer (Asia) Ltd. v. CCE – AIR 1995 SC 2344 = 106 ELT 18 = 1995 (Suppl) SCC 219 (SC 3 member bench) * Anil Starch Products Ltd. v. CCE 1997(89) ELT 21 (SC) * Rajasthan State Electricity Board v. Associated StoneIndustries 2000 AIR SCW 2482 = (2000) 6 SCC 141 * FGP Ltd. v. UOI (2003) 10 SSC 270 = 168 ELT289 (SC) * CCE v. Aldec Corporation 2005 (188) ELT 241 (SC) * White Machines v. CCE (2008) 224 ELT 347 (SC) * Medley Pharmaceuticals v. CCE (2011) 2 SCC 601 = 263 ELT 641 (SC).