Retrospective excise levy barred where copper tubes and pipes were manufactured before the deeming manufacture provision took effect.

Copper and copper alloy tubes and pipes fully manufactured before the deeming provision treating redrawing as manufacture came into force could not be subjected to excise duty merely because they were cleared later. A later legal fiction could not impose a retrospective levy on goods that were not dutiable when manufactured, and duty attaches only when the taxable event arises. Accordingly, the goods were held not liable to excise duty or special excise duty, and the revenue's challenge failed.

---

---

Issues: Whether copper and copper alloy tubes and pipes manufactured before the introduction of the deeming provision treating redrawing as manufacture could be subjected to excise duty when cleared after that date.

Analysis: The goods were admittedly fully manufactured before Note 2 under Chapter 74 came into force and only their clearance took place later. A levy of excise duty cannot be fastened retrospectively on goods that were not liable when manufactured merely because a subsequent legal fiction later treated the activity as manufacture. The issue was covered by the principle that goods manufactured before the incidence of duty arises are not chargeable on later clearance.

Conclusion: The goods were not liable to excise duty or special excise duty, and the revenue's challenge failed.

---