Customs exemption for exports turns on entry outwards date, so a later notification cannot change liability.

For export consignments, the applicable customs duty or exemption is determined by the date entry outwards of the vessel is effected. The Court applied the settled rule that the liability is fixed at that point, so a later notification or change in duty position does not alter the applicable rate. Because entry outwards had already been granted before the notification date relied on by the exporter, the exemption could not be claimed. Revenue therefore succeeded, and the exporter's challenge failed.

---

---

Issues: Whether the exporter was entitled to exemption from customs duty under the notification in force on the date claimed, or whether the applicable rate was governed by the date on which entry outwards for the vessel was made.

Analysis: The decisive factor was the date of entry outwards of the vessel that ultimately exported the goods. The Court applied the settled rule that, for export consignments, the relevant customs duty rate is the rate prevailing when entry outwards is effected, and a later change in the duty position does not alter the liability. On that basis, the exemption notification relied upon by the respondents could not be invoked because entry outwards had already been granted before the claimed notification date.

Conclusion: The respondents were not entitled to the exemption claimed, and the challenge to the High Court's view succeeded in favour of Revenue.

---