Date of clearance governs duty on excisable goods cleared after opting for a compounded levy scheme.

Excisable goods manufactured before an assessee opted for the compounded levy scheme but cleared afterwards are chargeable to duty at the rate prevailing on the date of clearance. The fact that the goods remained in stock when the scheme was adopted did not justify departure from that settled rule, and the cited Supreme Court decisions were treated as controlling. Duty paid on clearance under the compounded levy scheme was therefore proper, and no differential duty was payable.

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Issues: Whether excisable goods manufactured before the assessee opted for the compounded levy scheme, but cleared after such option, were chargeable to duty at the rate applicable on the date of manufacture or the date of clearance.

Analysis: The goods remained in stock when the assessee switched to the compounded levy scheme and were cleared thereafter on payment of duty under that scheme. The settled principle applied by the Court is that excisable goods are chargeable at the rate prevailing on the date of clearance. The existence of a compounded levy scheme did not justify any departure from that rule, and the cited Supreme Court decisions were treated as governing the issue.

Conclusion: The duty paid on clearance under the compounded levy scheme was proper, and no differential duty was payable.

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