Warehouse clearance and duty exemption: unmanufactured tobacco was not liable after the nil rate came into force.

Unmanufactured tobacco cleared from a warehouse after the duty exemption had come into force was not liable to excise duty, because the applicable rate was determined by the position at the time of clearance and the goods were still in the warehouse when the nil rate became operative. On that basis, the duty demand could not be sustained and the revision application was allowed.

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Issues: Whether excise duty was leviable on unmanufactured tobacco cleared from the warehouse after the duty on such tobacco had been exempted.

Analysis: The goods remained in the warehouse when the exemption from duty on unmanufactured tobacco came into force. The applicable rate for payment depended on the position at the time of clearance from the warehouse, and the goods had not yet been cleared when the nil rate became operative.

Conclusion: The demand for duty could not be sustained and the revision application was allowed.

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