Excise duty rate may be fixed by removal date where rules complement the charging section and regulate collection.

Manufacture or production is the taxable event for excise, but the rules may validly fix the date of removal as the point for determining the rate and quantum of duty. Rule 9A was treated as complementary to the charging provision because it links duty and tariff valuation to actual removal, while Rule 224(2A) was regarded as procedural in regulating removal after the budget date. On that basis, Rules 9A and 224(2A) were held valid and constitutional, and goods manufactured before 28-2-1983 but removed later attracted the enhanced rate prevailing on the date of removal, defeating the refund claim.

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Issues: Whether Rules 9A and 224(2A) of the Central Excise Rules, 1944 were invalid for inconsistency with Section 3 of the Central Excises and Salt Act, 1944, and whether excise duty on goods manufactured before 28-2-1983 but removed thereafter was payable at the enhanced rate prevailing on the date of removal.

Analysis: Section 3 is the charging provision and identifies manufacture or production as the taxable event, while leaving the manner of levy and collection to prescription under the Act. Rule 9A fixes the relevant date for determining duty and tariff valuation by linking the rate to the date of actual removal from the factory or warehouse. The rule was treated as complementary to Section 3, not as enlarging it. Rule 224(2A) was regarded as procedural, regulating removal after the budget presentation date and recognising removal as the operative point for assessment. The distinction between the taxable event and the stage at which duty is computed and recovered was accepted, and the view that duty may be levied and collected at removal for administrative convenience was applied.

Conclusion: Rules 9A and 224(2A) were held valid and constitutional, and the enhanced duty rate applicable on the date of removal was rightly applied. The challenge to the refund claim failed.

Ratio Decidendi: Although manufacture or production is the taxable event for excise, the rate and quantum of duty may validly be determined with reference to the date of removal where the statutory rules so provide, and such a rule is complementary to the charging section.

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