Excise duty attaches on manufacture, not clearance, so decorated table wares made before the notification escaped duty.

Excise duty on decorated table wares depended on when the goods became excisable, not merely on the date of clearance from the factory. The Tribunal held that the relevant point was the date of manufacture and decoration, and because decoration was completed before the notification came into force, the goods were outside the duty net. On that basis, the demand for duty was unsustainable and the assessee succeeded.

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Issues: Whether duty became payable on decorated table wares by reference to the date of clearance after the notification, or by reference to the date of manufacture and decoration before the notification.

Analysis: The dispute turned on whether the relevant date for excisability was the date of clearance or the date on which the goods were manufactured and decorated. The Tribunal held that the governing principle was the date of manufacture, and that the process of decoration having been completed before the notification came into force, the goods were not liable to duty. The decision relied upon the principle that liability to excise is determined by when the goods become excisable, not merely by when they are cleared from the factory or market.

Conclusion: The goods were not chargeable to duty, and the demand was unsustainable. The issue was decided in favour of the assessee.

Ratio Decidendi: Excise duty is attracted with reference to the date on which the goods become excisable through manufacture, not merely the date of their clearance.

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