Ex-bond clearance exemption applies on the removal date, making the differential customs duty demand unsustainable.

For ex-bond clearance of warehoused goods, the applicable rate of duty is the rate in force on the date of removal from the bonded warehouse under Section 15(1)(c) of the Customs Act. Where Notification No. 10/90, entry 19, was in force on that date and the goods did not fall within the exclusions in entries 7 to 9, the exemption was available even if the entry was not in existence when the warehousing bill of entry was filed. The differential duty demand was therefore not sustainable.

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Issues: Whether the benefit of the exemption under entry 19 of Notification No. 10/90 was available on the ex-bond clearance of the warehoused goods, having regard to the date on which duty became payable under Section 15(1)(c) of the Customs Act.

Analysis: The goods were removed from the bonded warehouse on 19-11-1992, and the rate of duty applicable was the rate prevailing on the date of such removal. Since the relevant exemption entry was in force on that date and the goods did not fall within the exclusions in entries 7 to 9, the exemption could not be denied on the ground that the entry was not in existence when the bill of entry for warehousing was filed.

Conclusion: The exemption under entry 19 of Notification No. 10/90 was available, and the differential duty demand was not sustainable.

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