WALLACE FLOUR MILLS COMPANY LTD. vs COLLECTOR OF CENTRAL EXCISE, BOMBAY,DIVISION III.

The Supreme Court, in Civil Appeal No. 3544 of 1989, upheld the Tribunal's decision regarding the classification of food products under the Central Excise & Salt Act, 1944. The Court clarified that even though the taxable event is the manufacture of excisable goods, duty can be levied at a later stage, as per Rule 9A of the Central Excise Rules, 1944. The Court affirmed that the appellant's pre-budget stocks were excisable and thus subject to duty despite being manufactured before the effective date of the Finance Bill, 1987-88.