Special excise duty was held payable on clearance when exemption ended after manufacture.

Special excise duty was treated as a distinct annual levy under the Finance Act, separate from basic excise duty. Goods manufactured while the duty was exempt, but cleared after the exemption had been withdrawn, remained liable because the relevant point for collection was the time of clearance. The exemption affected collection and not the existence of the levy, so withdrawal of the exemption before clearance made the duty payable on those goods.

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Issues: Whether special excise duty was leviable on goods manufactured when the duty was exempt but cleared after the exemption had ceased.

Analysis: The relevant levy was special excise duty, which was an annual impost under the Finance Act and distinct from basic excise duty. The goods were exempt from special excise duty on the date of manufacture, but the exemption had been withdrawn by the time of clearance. Applying the Supreme Court's ruling on the levy and collection of special excise duty, the Tribunal held that for goods manufactured while the levy existed though exempt, liability was to be determined at the time of clearance, and the exemption did not extinguish the levy.

Conclusion: The special excise duty was payable on the goods at the time of clearance and the appeal was rejected.

Ratio Decidendi: For special excise duty, where the goods are subject to the levy but exempt at manufacture and the exemption is withdrawn before clearance, liability to pay arises on clearance because exemption affects collection, not the existence of the levy.

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