Special excise duty on pre-budget stock cleared after levy date was upheld under the removal-based collection scheme.

Special excise duty was held payable on glycerin manufactured before 19-6-1980 but cleared from the factory after that date, because the duty may be levied and collected at the stage of removal for administrative convenience even though the taxable event is manufacture. Applying the scheme of the Central Excise Rules, 1944, including Rule 9A, the Tribunal treated liability as linked to clearance from the factory rather than manufacture alone. On that basis, pre-budget stock removed after the duty became chargeable remained assessable, and the appeals were allowed in favour of the Revenue.

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Issues: Whether special excise duty was payable on stock of glycerin manufactured before 19-6-1980 but cleared from the factory after that date.

Analysis: The Tribunal followed the Supreme Court's ruling that, though the taxable event is manufacture or production of an excisable article, duty may be levied and collected at the later stage of removal for administrative convenience. On that basis, pre-budget stock cleared after the date on which special excise duty became chargeable remained liable to duty. The relevant scheme, including Rule 9A of the Central Excise Rules, 1944, supports linkage of payment to removal from the factory rather than to the date of manufacture alone.

Conclusion: Special excise duty was payable on the glycerin stock manufactured before 19-6-1980 but cleared after 19-6-1980, and the appeals were allowed in favour of the Revenue.

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