Tariff classification on removal governs duty when excisable goods shift entry after a tariff amendment.

Where excisable goods remain dutiable both before and after a tariff amendment, the duty is determined by the tariff and rate in force at the time of removal, not by the classification in force when manufacture was completed. The note distinguishes cases involving a new levy or complete exemption from cases where goods merely shift from one tariff item to another, and states that Rule 9A of the Central Excise Rules, 1944 links assessment and collection to removal. It further states that an amendment given immediate effect under the Provisional Collection of Taxes Act, 1931 applies to clearances made after the effective date.

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Issues: Whether goods manufactured before the tariff amendment but removed after its commencement were classifiable for duty purposes under the pre-amendment tariff entry or the amended entry, and whether Rule 9A of the Central Excise Rules, 1944 and the Provisional Collection of Taxes Act, 1931 required application of the amended tariff at the time of removal.

Analysis: The goods were excisable both at the time of manufacture and at the time of removal, but the tariff entry changed in the interval. The controlling question was whether, in such a situation, the applicable classification and rate of duty were fixed when manufacture was completed or when the goods were removed. The Tribunal distinguished cases where goods were wholly exempt or became excisable for the first time, and treated the present controversy as one where the goods remained dutiable throughout but shifted from one tariff item to another. It held that Rule 9A links duty to the time of removal for purposes of assessment and collection, and that the Finance Bill amendment, given immediate effect by the Provisional Collection of Taxes Act, 1931, applied to goods cleared after the effective date. The distinction sought to be drawn between a change in rate and a change in description was rejected.

Conclusion: The amended tariff entry applied on removal, and the Revenue's stand was correct.

Final Conclusion: The appeal succeeded and the order of the Collector (Appeals) was set aside, with restoration of the Superintendent's order.

Ratio Decidendi: Where excisable goods remain dutiable both before and after a tariff amendment, and the amendment is brought into force with immediate effect, the duty payable is determined by the tariff and rate in force at the time of removal, not by the earlier classification at the time of manufacture.

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