Place of removal cannot determine excise duty rate; valuation concepts cannot override the factory-based rate rule.

The expression "place of removal" under excise law is relevant to valuation and assessable value, not to fixing the applicable rate of duty. Where goods were cleared from a consignment agent's premises after a duty increase, the rate was required to be determined by reference to the date of removal from the factory, and valuation concepts could not be used to alter that rule. The order under challenge erred in law by treating the consignment agent's premises as the relevant place for rate determination. The assessee's contention was accepted, and the demand and penalty did not survive.

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Issues: Whether the expression "place of removal" could be used to determine the rate of duty on goods cleared from the premises of a consignment agent after the duty rate was enhanced.

Analysis: The relevant statutory scheme showed that "place of removal" is material for valuation and determination of assessable value under the excise law, not for fixing the rate of duty. The applicable rate depended on the date of removal from the factory, and there was no basis to extend the concept of consignment agent premises as the place for rate determination. The order under challenge proceeded on an error of law by using valuation concepts to decide the duty rate.

Conclusion: The use of "place of removal" to determine the duty rate was impermissible and the assessee's contention was accepted.

Final Conclusion: The impugned demand and penalty did not survive and the appeal was allowed.

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