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TMI Blog1998 (11) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of Rule 224(2A) of the Central Excise Rules, 1944, the appellants executed an undertaking to pay the differential duty if the duty on cement was enhanced in the Budget. They cleared the cement weighing 404.5 mts. at the rate of Rs. 290/- per tonne as basic excise duty and Rs. 43.50 per mt. (@15% of BED) as special excise duty. However, the basic excise duty on cement was enhanced to Rs. 330/- per mt. but the special excise duty was withdrawn according to the budget proposals effective from 28-2-1993. 1.3 In terms of the undertaking, the appellants were asked to deposit the differential duty @ Rs. 40/- per mt. (Rs. 300-Rs. 290) plus 15% of B.E.D. as S.E.D. on the aforesaid quantity of cement cleared on the budget day after 17.00 hr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at enhanced rate, if any, that may be applicable to such goods with effect from the date immediately following the date aforesaid (i.e. budget day) is to be undertaken to be paid by the assessee. Purpose of P.C.T. Act is totally different and it does not come in conflict with Rule 224(2A). Sub-rule (2) of Rule 224 ibid prohibits removal of excisable goods after 17.00 hrs. on the Budget Day. Sub-rule (2A) is a relaxation of the earlier sub-rule subject to execution of an undertaking by a manufacturer/assessee. Having availed of that relaxation under sub-rule (2A), the appellant cannot go back on his undertaking to pay duty at enhanced rate, though applicable from the following day, on goods cleared after 17.00 hrs. on Budget Day. Learend S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of duties of Customs or excise. 3.3 Ratio of Indian Explosive, appears to be, that Rule 224 applies only to enhanced rate in an existing levy, though applicable immediately following the expiry of the budget day to clearances of excisable goods effected during 1700 hrs. to 24.00 hrs. on the budget day, on the basis of an undertaking executed by a manufacturer under the said rule. As stated in J.K. Synthetics, Indian Explosives harmonises both Rule 224 of the Central Excise Rules, 1944 and the provisions of Provisional Collection of Taxes Act but J.K. Synthetics makes the provisions of Rule 224(A) superfluous, even in cases of enhancement in rate of duty in the Finance Bill etc., in pre-existing levies because of provisions in the P.C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded and is supported by Bombay High Court s judgment in 1988 (34) E.L.T. 522 (Bom.) - Para 8 [Someshwar Sahakari Sakhar Karkhana Ltd. v. U.O.I.] 3.6 Rule 224(2) itself recognises that the proposed enhancements in rates are going to be made applicable from the day following the day of presentation of the Bills referred to in sub-rule (2), when it uses the expression :- .... enhanced rate, if any, that may be applicable to such goods with effect from the date immediately following the date aforesaid..... Yet Rule 224(2A) envisages execution of an undertaking as aforesaid, binding the manufacturer to pay duty at the enhanced rate for clearance between 17.00 hrs. to 24.00 hrs. on the day of presentation of such a Bill. 3.7 Reason for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... compliance to both P.C.T. Act and the Rule 224(2A) has to be observed and enforced. We observe, while on this aspect, that P.C.T. Act does not have any `non obstante clause such as notwithstanding anything contained in any other Act or the rules made thereunder.... so as to give over-riding effect to the provisions of that Act over Rule 224(2A). We also notice that sub-rule 224(2A) was introduced many years later while P.C.T. Act, 1931 was already in existence. 3.9 Such a view, as above, has been taken by the learned Vice President (Judicial), as part of the majority opinion in Tribunal s judgment in 1990 (50) E.L.T. 370 [Associated Cement Co. v. Collector para 15]. Relevant extracts are reproduced below :- The question turns on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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