The duty is chargeable when goods are manufactured but the time of collection is postponed till removal of goods. Therefore, if there is a manufacture of excisable goods, the excise duty will be levied on completion of such manufacture. However, the collection of duty will be postponed till the time of removal of goods from factory or from warehouse where such goods have been allowed to be stored without payment of duty. In such a case, goods transferred to depot from sale thereon will not be meant to be goods stored in a warehouse and as such duty will be paid at the time of removal of goods from the factory itself.
Further, as per valuation rule 7, the goods which are removed from factory for sale at depot are to be valued on normal transaction value prevailing at depot at the time of removal of goods from the factory. In this case, the normal transaction value is Rs. 1000/-. Therefore, the goods will be valued at Rs. 1000/-.
Hope this is clear.