Clearance-date excise duty under Rule 9A applies to goods that were already excisable at manufacture.

Rule 9A of the Central Excise Rules fixes excise duty by reference to the date of clearance, not the date of manufacture, for goods that were excisable when manufactured. Where the goods were not wholly exempt at the time of manufacture and remained liable to duty, even at a reduced rate, the applicable rate is the rate in force when the goods are cleared. The distinction drawn is between wholly exempt goods and goods already dutiable in some form; the former may stand differently, but the latter are assessed at the clearance-date rate. The contrary view would undermine Rule 9A and was rejected.

---

---

Issues: Whether excise duty on goods manufactured before an increase in duty but cleared after the increase is payable at the rate in force on the date of manufacture or on the date of clearance.

Analysis: Rule 9A of the Central Excise Rules fixes the rate of duty with reference to the date of clearance. The distinction drawn in the authorities considered is between goods that were wholly exempt on the date of manufacture and goods that were only partially exempt or otherwise dutiable at that time. Where goods were excisable and liable to duty, even if at a reduced rate, the rate applicable at clearance governs assessment. A contention that the manufacture-date rate alone applies would make Rule 9A ineffective and amount to challenging its validity, which was not accepted.

Conclusion: The duty was payable at the enhanced rate prevailing on the date of clearance, and the assessee's contention was rejected.

Ratio Decidendi: For excisable goods that are not wholly exempt at the time of manufacture, the rate of duty applicable under Rule 9A is the rate in force on the date of clearance, not the date of manufacture.

---