Bonded warehouse clearance determines the taxable event, so the levy in force on ex-bond release applied to additional duty.

Special additional duty was held leviable on imported goods cleared from a bonded warehouse after the levy came into force, even though the goods had been brought into bond earlier. The controlling principle was that, for bonded warehouse clearances, the taxable event for customs duty and any additional duty arises on the date of ex-bond clearance for home consumption, and the levy then in force applies. Relief based on the trade notice and Board's letter was unavailable because those materials were confined to 100% EOU cases, and the importer was not a 100% EOU. The Commissioner (Appeals) order was therefore set aside in favour of Revenue.

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Issues: Whether special additional duty was leviable on imported goods that were brought into bond before the levy was introduced but cleared for home consumption from the bonded warehouse after its introduction.

Analysis: The decisive date for customs duty and any additional duty thereon is the date on which the goods are cleared from the bonded warehouse for home consumption. The benefit of the trade notice and the Board's letter was unavailable because they were confined to 100% EOU cases and the importer was not a 100% EOU. The rule applied from the Supreme Court authority on the taxable event for bonded warehouse clearances was therefore controlling on the facts.

Conclusion: Special additional duty was leviable, and the order of the Commissioner (Appeals) was set aside in favour of Revenue.

Ratio Decidendi: For goods cleared from a bonded warehouse, the taxable event for customs duty and any additional duty occurs on the date of ex-bond clearance, and the levy in force on that date applies.

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