C. Ex. - Rule 9A - Durability of goods; produced when exempt from the payment of duty but were liable to pay duty at the time of clearance - Supreme Court decision - Regarding

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....e of clearance - Supreme Court decision - Regarding Circular No. 5/90-CX.1. Dated 20-2-1990 [From F. No. 6/50/87-CX.1] Government of India Central Board of Excise & Customs New Delhi Subject : C. Ex. - Rule 9A - Durability of goods; produced when exempt from the payment of duty but were liable to pay duty at the time of clearance - Supreme Court decision - Regarding. Refere....

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.... dated 28-2-1979 wherein it was clarified that in cases where duty has been imposed afresh, either by way of withdrawal of exemptions or by amendment to the tariff, stocks of such goods which were duty free either under the Central Excise tariff itself or under Rule 8(1) of the Central Excise Rules should not be subjected to duty, if they were in a fully manufactured condition, ready for delivery ....

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....from the factory. Rule 9A of the said rules merely does that. That is the scheme of the Act. It does not, in our opinion, make removal be the taxable event The taxable event is the manufacture. But the liability to pay the duty is postponed till the time of removal under Rule 9A of the said Rules. In this connection, reference may be made to the decision of the Karnataka High Courtin Karnataka Cem....