https://www.taxtmi.com/caselaws?id=167273 Excise duty is attracted by manufacture, with collection linked to removal under Rule 9 of the Central Excise Rules. Yarn manufactured and cleared while the exemption notifications were in force could not be subjected to duty merely because the cotton fabrics made from it were produced later after those notifications had ceased to operate. A later notification could not retrospectively impose duty on goods already manufactured and removed, as that would defeat the exemption already enjoyed and conflict with the basic nature of excise levy. The duty demand on the yarn was therefore not sustainable, and refund followed. en-us Tue, 05 Mar 1985 00:00:00 +0530 Sat, 13 Dec 2014 13:19:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=167273 Excise duty is attracted by manufacture, with collection linked to removal under Rule 9 of the Central Excise Rules. Yarn manufactured and cleared while the exemption notifications were in force could not be subjected to duty merely because the cotton fabrics made from it were produced later after those notifications had ceased to operate. A later notification could not retrospectively impose duty on goods already manufactured and removed, as that would defeat the exemption already enjoyed and conflict with the basic nature of excise levy. The duty demand on the yarn was therefore not sustainable, and refund followed. Case-Laws Central Excise Tue, 05 Mar 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=167273