Revised classification takes effect only from trade notice date, with captive-consumption exemption considered in duty computation.

Revised tariff classification under Chapter 39 was treated as effective only from the date the trade notice made the Board's order public, so the enhanced duty could not be applied for any earlier period. The Tribunal also required the duty computation to reflect the benefit of Notification No. 217/86 where the goods were considered under Chapter 39 for captive consumption purposes. Applying its earlier decision on identical facts, it allowed the demand only from the trade notice date and directed that the exemption benefit be taken into account, giving the assessee partial relief.

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Issues: Whether the revised classification under Chapter 39 and the differential duty demand were to operate only from the date of the trade notice, and whether the appellants were entitled to the benefit of Notification No. 217/86 in working out the duty liability.

Analysis: The Tribunal followed its earlier decision on identical facts and applied the principle that the revised classification order issued by the Board takes effect from the date on which it is made public through the trade notice, not from an earlier date. On that basis, the higher rate of duty could be levied only from the date of the trade notice. The Tribunal also accepted that, once the goods were treated under Chapter 39 for duty purposes, the benefit linked to captive consumption and the exemption notification had to be taken into account while computing the demand.

Conclusion: The revised classification and enhanced duty were held applicable only from the date of the trade notice, and the benefit of Notification No. 217/86 was required to be considered while determining the duty payable, resulting in partial relief to the assessee.

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