Rule 57CC(1) inapplicable where the same product is cleared both on duty and under exemption.

Rule 57CC(1) applies only where there are distinct final products, one dutiable and another exempt or nil-rated. The same manufactured goods, here caustic soda flakes, could not be split into different final products merely because some clearances were duty paid and others were cleared under an exemption notification. On that reasoning, the provision was not attracted, and no excise duty consequence could follow on the footing that different clearances of the same product constituted separate final products. The Revenue's challenge therefore failed, and the Tribunal's view was left undisturbed.

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Issues: Whether Rule 57CC(1) could be invoked when the same final product was partly cleared on payment of duty and partly cleared without payment of duty under an exemption notification.

Analysis: Rule 57CC(1) applies only where there are distinct final products, one dutiable and another exempted or chargeable at nil rate. The clearances in question were of the same manufactured goods, namely caustic soda flakes, and it was not permissible to treat part of the quantity of the same final product as one final product and the remaining quantity as another final product merely because some clearances were duty paid and some were exempted. The exemption notifications were correctly understood by the Tribunal in the light of the nature of the final products.

Conclusion: Rule 57CC(1) was not attracted, and the Revenue's challenge failed.

Final Conclusion: The dismissal of the appeal left undisturbed the Tribunal's view that no excise duty consequence could follow on the footing that different clearances of the same product constituted different final products.

Ratio Decidendi: Where the same final product is cleared partly on payment of duty and partly under an exemption, Rule 57CC(1) is inapplicable unless there are separate dutiable and exempt final products.

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