2014 (5) TMI 1043 - HC - Central Excise

Applicability of enhanced rate of duty as amended in the manner specified in the Seventh Schedule of the Finance Act 2008 coming into force with immediate effect after passing of the Bill on 29.04.2008 or on date of enactment as on 10.05.08 - appellant engaged in the manufacture of Portland Pozzolana Cement falling under sub-heading 25232930 of the First Schedule to the Central Excise Tariff Act 1985 - demand raised arising out of the substitution of tariff rate of Rs. 900/- per ton in place of Rs. 600/- per ton for the intervening period from 29.04.2008 to 09.05.2008 - Held that - Tribunal has taken a correct view of the matter. A declared provision in the bill may ultimately be passed with or without amendment. Obviously an amendment can be made applicable to an entry which was originally there in the bill. An entry which was not there at all and was subsequently brought in cannot be said to have been protected by the declaration made under Section 3 of the Act of 1931. - No merit in appeal - Decided against Revenue.

Summary

Issues: Interpretation of Section 4 of the Provisional Collection of Taxes Act, 1931 in relation to the Finance Bill, 2008.

In this judgment, the High Court of Calcutta considered the challenge against a decision of the Customs, Excise & Service Tax Appellate Tribunal regarding the effective date of an enhancement in duty on cement. The Tribunal's decision was based on the interpretation of Section 4 of the Provisional Collection of Taxes Act, 1931, in connection with the Finance Bill, 2008. The appellant argued that the declaration made under the Act automatically included subsequent amendments to the bill. The appellant relied on Section 4 of the Act, emphasizing that a declared provision becomes law immediately upon the bill's introduction. However, the respondent contested this interpretation, highlighting that the declaration was made with reference to the original bill and not the subsequent amendment. The Court analyzed both arguments and agreed with the Tribunal's view. The Court held that an amendment can apply to an existing entry in the bill but cannot protect a new entry introduced after the declaration was made. Consequently, the Court dismissed the appeal, affirming the Tribunal's decision on the matter.

This judgment provides a significant interpretation of the interaction between the Provisional Collection of Taxes Act, 1931, and amendments to a bill, specifically in the context of the Finance Bill, 2008. It clarifies that while a declared provision in a bill may be passed with or without amendments, amendments cannot retroactively apply to entries not originally present in the bill at the time of the declaration. The ruling underscores the importance of precise drafting and timing in legislative processes, ensuring that subsequent changes are appropriately accounted for within the legal framework.