Rule -5 of CER,2002 :- Date for determination of duty and tariff Valuation : The rate of duty or tariff value applicable to any excisable goods ,shall be the rate or value in force on the date when such goods are removed from a factory or a warehouse ,as the case may be .
Whether duty liability will arise or not under the following different situations are as under-
Rate of duty prevalent at the time of manufacture | Rate of duty prevalent at the time of removal of goods | Whether duty payable ? |
Non -Excisable | 14% | No, as the goods were non-excisable goods at the time of manufacture |
Exempted goods but Excisable goods | Exemption withdrawn | Yes, as the goods were excisable goods at the time of manufacture. ( SC in Wallace Flour Mills Co.Ltd. v. CCE ) |
‘NIL’ rate of duty but excisable goods | 14% | Yes , as the goods were excisable goods at the time of manufacture. |
12.5% tariff rate | 14% ( Tariff Rate increased by way of Union Budget ) | Yes, the goods are liable at 14% because at the time of removal rate changed by CG. |
Goods were not liable to special duty | Goods were made liable to special duty by Finance Act i.e. declared in Union Budget . | No, as there was no levy of special duty on goods at the time of manufacture ( SC in Vazir Sultan Tobacco Co.Ltd. v. CCE ) |