Notification applicability to pre-existing goods: later excise notification could not impose duty on goods manufactured before its commencement.

Goods manufactured before 31 August 1997 but cleared later were held outside Notification No. 57/97, because the clarification in paragraph 5 of the Ministry's letter dated 30 August 1997 applied to goods already manufactured before the notification commenced on 1 September 1997. The later notification could not be used to fasten duty liability on such goods. The appellant therefore succeeded and the duty demand was not sustainable under Notification No. 57/97.

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Issues: Whether goods manufactured before 31 August 1997 but cleared thereafter were governed by Notification No. 57/97 which came into force on 1 September 1997.

Analysis: The goods on which duty was demanded had been manufactured before 31 August 1997 and cleared subsequently. The clarification in paragraph 5 of the Ministry's letter dated 30 August 1997 applied to such goods. On that basis, the later notification could not be applied to fasten duty liability on the appellant for goods already manufactured before its commencement.

Conclusion: The goods were not liable to duty under Notification No. 57/97, and the appellant succeeded.

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