Excise duty rate follows date of clearance, so goods cleared after enhancement attract the higher levy.

For excise duty, the applicable rate is determined by the date of clearance from the factory, even though manufacture remains the taxable event. Goods manufactured before an enhancement but cleared afterwards are therefore chargeable at the enhanced rate prevailing on the date of clearance. The Court followed earlier authority treating duty collection at removal as the operative point for rate determination, and accepted the revenue's position. The appeal succeeded and the High Court's order was set aside.

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Issues: Whether excisable goods manufactured before an enhancement of excise duty but cleared thereafter are chargeable at the enhanced rate prevailing on the date of clearance.

Analysis: The question was treated as settled by earlier decisions. The governing principle applied was that although manufacture is the taxable event, duty is collected at the stage of removal for administrative convenience, and the applicable rate depends on the date of clearance. The Court followed the view that when goods are manufactured under one rate but cleared after the rate is enhanced, the later rate governs the levy.

Conclusion: The goods are liable to the enhanced rate of duty prevailing on the date of clearance, not the rate in force on the date of manufacture.

Final Conclusion: The appeal succeeded and the High Court's order was set aside, with the revenue's position on applicability of the enhanced duty rate accepted.

Ratio Decidendi: For excise purposes, the relevant date for determining the rate of duty is the date of clearance from the factory, even though manufacture remains the taxable event.

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