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2015 (4) TMI 647 - AT - Central ExciseEnhancement in rate of duty - Effective date for enhancement - Government introduced an amendment to clause 141 of the Finance Bill 2012 by which the Ad valorem rate introduced with effect from 17.03.2012 was converted into specific rate and this had effect increasing the rate of duty on the Cigarette. However, this amendment was not accompanied by a declaration under section 3 of the PCT Act. The Finance Bill as amended, received the President's assent on 28.05,2012 - whether enhanced rates of duty as per the amendment introduced on 08.05.2012 would be applicable w.e.f. 17.03.2012 - Held that - Since, both the sides agree that the issue involved in this case is covered in favour of the appellant by the Board's Circular No. 981/05 dated 11.02.2014, which has been followed by Tribunal in its judgment in the case of ATC ltd, vs CCE Chennai-III, (2015 (2) TMI 1008 - CESTAT CHENNAI) the impugned order is not sustainable. The same is set aside - Decided in favour of assessee.
Issues: Determination of applicable duty rates on Cigarettes between 17.03.2012 to 27.05.2012 based on amendments to Finance Bill 2012.
Analysis: The case involved a dispute regarding the applicable duty rates on Cigarettes between 17.03.2012 to 27.05.2012 due to amendments made to the Finance Bill 2012. Initially, an ad valorem component was imposed through clause 141 of the Finance Bill, 2012, effective from 17.03.2012, accompanied by a declaration under the Provisional Collection of Taxes Act, 1931. Subsequently, on 08.05.2012, an amendment converted the ad valorem rate into a specific rate, increasing the duty on Cigarettes. However, this amendment was not accompanied by a declaration under the PCT Act. The appellant paid duty based on the rates announced on 16.03.2012, while the Department contended that the duty should be charged as per the amendment from 08.05.2012. The Commissioner confirmed a duty demand against the appellant, leading to the appeal. The Tribunal, after considering submissions from both sides, noted that the issue was covered in favor of the appellant by the Board's Circular dated 11.02.2014. The Circular clarified that the enhanced rates announced in the amendment to the Finance Bill 2012 on 08.05.2012 would be applicable only from 28.05.2012, as the amendment was not accompanied by a declaration under the PCT Act. The Tribunal also cited a previous judgment in a similar case and upheld by the High Court, supporting the appellant's position. The Department's representatives acknowledged that the case was in favor of the appellant based on the Circular and previous Tribunal judgments. Ultimately, the Tribunal found that the impugned order was not sustainable in light of the Board's Circular and the Tribunal's previous decisions. As a result, the Tribunal set aside the order of the Commissioner, allowing the appeal in favor of the appellant. The judgment was dictated and pronounced in open court, bringing the matter to a close.
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