Duty on inputs cleared as such applies at first receipt rate, not the later clearance rate.

On clearance of inputs as such under Rule 57F(1)(ii), the applicable duty is the duty borne by the inputs at the time of their first receipt, because "appropriate duty of excise" was construed to refer to that original rate. The Tribunal followed a later Third Member Bench view and did not accept the earlier approach that applied the rate prevailing on the date of second removal. The operative position is that subsequent clearance does not attract the later rate of duty.

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Issues: Whether, on clearance of inputs as such under Rule 57F(1)(ii), the applicable rate of duty is the rate borne by the inputs at the time of first receipt or the rate in force at the time of second clearance.

Analysis: The Tribunal noted that the point stood covered by a later Third Member Bench decision, which interpreted the expression "appropriate duty of excise" as referring to the duty rate applicable to the inputs at the first instance. On that basis, the earlier view applying the rate prevailing on the date of second removal was not followed.

Conclusion: The applicable duty rate is the rate suffered by the inputs at the time of their first receipt, not the rate prevailing at the time of their subsequent clearance.

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