IDT

At the time of manufacture goods were excisable (chargeable to duty) but at the time of removal, goods becomes non excisable i.e removed from CETA . Whetehr duty will b payable and if yes what will b the rate of duty ??

Replies (7)

yes..........,

duty shall be payable at the rate prevailing just before such amendment...

e.g. Product  X, at the time of manufacturing, there was a rate 16% in CETA, and at the time of removal, CETA was amended (suppose on 30-7-2010) and X was withdrawn from CETA (or have " - ")., before such amendment, the rate was

1.12% (this is after taking effect of EN) on 25-7-2010

2. 15% (this is before taking effect of EN) on 25-7-2010

3. 14% (this is after taking effect of EN) on 15-7-2010

then Product X will be excisable at the rate 12%

 

there is a case law in support of my ans but I am not remembering the same.... but my ans is 100% is correct....

thanx buddy, i was also thinking of the same but there was no clear ans to this in any of the material. Neways pls let me know the case law if u come to know....

hi nikit

the basis for excisable goods or not  is based on date of manfacture

and basis for rate of excise duty is based on date of removal

in my opinion the goods attracts nill rate of duty. (read the bold items)

you have no need to learn that case law, as institute ask only latest case laws..., 

so remember that concept only, for practical qus,

However, I will reply the case law tomorrow....

Dear Sudhakar

You are right, that ROD is taken which prevails at the TOR,

however in the given case, you can not charge at Nil Rate (even as per you reason also) because there is no rate at the time of removal,

And If we make purposive construction, that is, the purpose of Excise Act, is to levy and collect duties at the rate mentioned in CETA, now, if once after occurrence of excisable event, if there is no rate at the time of removal then just preceding rate shall be taken...

 

can u provide me the case

the case is

"CCE v. Vazir Sultan Tobacco Co. Ltd. (1996)  83 ELT 3 (SC)"

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