Date of removal governs excise exemption where goods are cleared after the notification comes into force.

Duty liability was determined by the rate in force on the date of removal where the goods were already excisable at the time of manufacture. On that principle, goods manufactured before but cleared after Notification No. 115/86-C.E. came into force were entitled to the exemption. The order was also defective because it contained no finding on the plea of limitation, but the substantive issue on exemption was decisive and the impugned order was held unsustainable.

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Issues: Whether the goods were entitled to exemption under Notification No. 115/86-C.E. dated 1-3-1986 on the basis of the date of removal, and whether the absence of findings on the plea of limitation vitiated the order.

Analysis: The duty liability was governed by the rate in force when the goods were removed, where the goods were already exigible to duty at the time of manufacture. On that principle, goods manufactured earlier but cleared after the notification came into force were entitled to the exemption. The order also contained no finding on the plea of time bar, which rendered it defective, though the appeal was decided on the substantive exemption issue.

Conclusion: The exemption was available to the assessee because the relevant date was the date of removal, and the impugned order was unsustainable.

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