Central excise duty rate follows the payment date for seized goods cleared after seizure, not the seizure date.

For seized excisable goods cleared after seizure, the applicable central excise duty rate is the rate in force on the date of payment, because Rule 9A(5) of the Central Excise Rules, 1944 expressly fixes liability by payment date rather than seizure date. The seizure date does not control the rate where the rule links duty to the date on which payment is made. The notification relied on by the appellant was treated as consistent with that position, so the demand based on the earlier rate could not stand and the assessee succeeded.

---

---

Issues: Whether, in respect of seized excisable goods cleared on payment of duty after seizure, the duty was payable at the rate prevailing on the date of seizure or at the rate in force on the date of payment.

Analysis: Rule 9A(5) of the Central Excise Rules, 1944 governs the applicable rate in such cases and provides that the duty shall be charged at the rate in force on the date on which the duty is paid. The earlier seizure date does not determine the rate where the rule expressly links liability to the date of payment. The notification relied on by the appellant was consistent with this position.

Conclusion: The duty was payable at the rate in force on the date of payment. The issue is decided in favour of the assessee.

Final Conclusion: The appeal succeeds and the demand based on the earlier rate cannot stand.

Ratio Decidendi: Where Rule 9A(5) applies, the relevant rate of central excise duty is the rate prevailing on the date of payment of duty, not the date of seizure.

---