Cleared excisable goods remain governed by duty already paid, not a later enhanced rate after removal documentation.

Excisable manufactured goods cleared on payment of duty and accompanied by the required gate pass were not liable to a later enhanced rate merely because the wagons remained in a railway siding within the extended factory area. The scheme under the Central Excises and Salt Act, 1944 and the Central Excise Rules, 1944 distinguished levy, payment, and removal; where payment and clearance were synchronous, Rule 9-A was applied so that the duty already paid governed the goods. Because the authorities had already treated the goods as cleared and had not included the siding within the factory premises, the differential duty was wrongly recovered and refund was allowed in favour of the assessee.

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Issues: Whether excisable goods, on which duty had been paid and gate pass issued, could be subjected to the enhanced rate of duty merely because the wagons remained in the railway siding within the extended factory area when the new rate came into force.

Analysis: The relevant scheme under the Central Excises and Salt Act, 1944 and the Central Excise Rules, 1944 made a distinction between the levy, the time of payment, and the removal of goods. For manufactured goods, Rule 52 contemplated clearance on payment of duty and Rule 52-A required a gate pass for actual removal. On the facts, duty had been paid, the goods had been cleared, sealed wagons had been issued railway receipts and gate pass, and the Excise authorities themselves had refused to include the new siding within the factory premises. Rule 9-A was therefore construed to mean that where payment of duty and clearance were synchronous, the goods were governed by the duty already paid and not by a later enhanced rate.

Conclusion: The enhanced duty was not leviable on the goods and the differential duty was wrongly recovered. The claim for refund succeeded and was in favour of the assessee.

Ratio Decidendi: Where excisable manufactured goods have been cleared on payment of duty and duly passed for removal, a later increase in duty cannot be applied merely because the goods remained within the factory-linked siding after such clearance.

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