Excise exemption clearances turn on actual removal of goods, not advance receipt of escalated sale price.

For excise exemption based on aggregate clearances, the controlling event is the actual removal of goods from the factory, not the date on which the sale price or escalated price is received. Under the rate contract, escalation linked to raw material costs could be billed and received in advance, but that receipt did not shift the clearance into the year of receipt for Notification No. 77/83-C.E. The aggregate value had therefore to be computed by reference to the date of clearance, and the advance escalated amount could not be used to deny the exemption benefit.

---

---

Issues: Whether escalated price received in advance under a rate contract was to be included in the financial year of receipt for computing the aggregate value of clearances under Notification No. 77/83-C.E., or whether the computation had to be linked to the date of actual removal of the goods.

Analysis: The rate contract provided for a basic price and also for escalation linked to changes in the price of raw materials. On that basis, the escalated amount could be billed and received before actual clearance of the consignment, but the duty liability under the excise scheme continued to arise with reference to removal from the factory. The relevant accounting for the notification therefore had to follow the date of clearance and not the mere date on which the basic or escalated amount was received. The lower authorities' view that escalation could never be treated as advance receipt was not accepted in light of the contractual arrangement.

Conclusion: The aggregate value of clearances had to be reckoned with reference to the date of actual removal of the goods, and the escalated price received in advance could not be forced into the year of receipt for the purpose of denying the benefit of the notification.

Ratio Decidendi: For excise exemption based on aggregate clearances, the controlling event is the date of removal of the goods, and advance receipt of the sale price or escalated price does not alter the year in which the clearance is to be counted.

---