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TMI Blog2013 (12) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... y by notification - it is a case for imposition of levy by Finance Bill, 1999 - tea was 'nil' rate of duty prior to 27.02.1999 - By Finance Bill, 1999, duty was imposed, which would be forced into law on the midnight - the clearances made by the appellants before midnight, no demand can be raised – order set aside – Decided in favour of Assessee. - E/00491 to 00494/2004 - 40274-40277/2013 - Dated:- 22-5-2013 - P K Das And Mathew John, JJ. For the Appellant : Shri C Saravanan, Adv. For the Respondent : Shri M Ram Mohanrao, JDR PER : Pradip Kumar Das All the appeals are arising out of a common order and, therefore, all are taken up together for disposal. 2. As the facts of the case in all the appeals are mostly identical i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tea Factory 5,000 30,000 E/493/2004 M/s. Peria Karamalai Tea and Produce Co. Ltd. 5,000 On vehicle 15,000 E/494/2004 M/s. Nadumalai Tea Factory 17,400 1,000 2,500 34,000 On vehicle 25,000 59,000 The Commissioner (Appeals) upheld the adjudication orders. Hence, the appellant filed these appeals. 3. The learned counsel on behalf of the appellants submits that there is no dispute that the goods were cleared on budget day [i.e., 27.02.1999] at about 17 30 hrs. He submits that tea was 'nil' rate of duty prior to budget and the fresh levy would be effective immediately at the expiry of the day on which the budget was presented [i.e., after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the records, we find that by Finance Bill, 1999, as announced on the budget day 27.02.1999 duty was imposed on tea, including tea waste at the rate of Rs.2/- per kg. The issue involved is that the goods removed after 05 00 p.m. before mid-night of budget day, whether the new levy would be imposed as per Rule 224 (2A) of the erstwhile Rules, 1944. We find that Provisional Collection of Taxes Act, 1931 provides effect to the declaration of the law and the relevant portions are reproduced below:- "3. Power to make declarations under this Act. - Where a bill is to be introduced in Parliament on behalf of the Government provides for the imposition or increase of duty of Customs or Excise, the Central Government may cause to be inserted in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns in this Bill shall have immediate effect under the Provisional Collection of Taxes Act, 1931. Section 4 (1) of the Act, 1931 clarifies that the immediate effect would mean immediately on the expiry of the day on which the Bill is introduced. In the present case, the Bill was introduced on 27.02.1999 and the declared provisions shall have the force of law on the expiry of the date on 27.02.1999 [i.e., midnight at 12 00 Hrs.]. Hence, in the present case, the duty imposed on Tea on 27.02.1999 cleared from the factory at about 17 30 hrs on the budget date, the 'nil' rate of duty would be applicable. 6. We find that this view is supported by the decision of the Tribunal in the case of J.K Synthetics Ltd. (supra). In that case, goods were cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the facts and circumstances of the present case. In the case of M/s. Vikrant Tyres (supra), the Larger Bench of the Tribunal decided the issue is whether the undertaking given by the appellant under Rule 224(2A) would cause levy of duty at the enhanced rates by Notification dated 01.03.2000, when the clearances were effected on 29.02.2000, after 11 00 a.m. and before 05 00 p.m. It was held that the differential duty on enhancement of rate of duty on the budget day had been rightly recovered. The Larger Bench observed that in M/s. J.K. Synthetics Ltd. (supra), the ratio of law laid down in M/s. India Explosives Ltd., had been followed, wherein, the facts and the issue involved as observed in that case were different. In the present case, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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