9911796707
TMI Blog1984 (12) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... ives Ltd., the appellants : (hereinafter referred to as IEL) are engaged in the manufacture of urea fertilizer. On the day appointed for presentation of the annual Budget of the Central Government for 1978, namely, 28-2-1978, IEL applied for and secured from the Central Excise authorities permission for taking clearance of the goods between 17.00 hours and 24.00 hours on 28-2-1978 on furnishing an undertaking that they would pay the differential amount of duty in case there was an increase in the rate of duty applicable to the goods on the day following 28-2-1978. This was in terms of Central Excise Rule 224(2A). The quantity of urea which was cleared between 17.00 hours and 24.00 hours on 28-2-1978 was 104 M.T. As it happened, the Finance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise duties and that in terms of Rule 224(2A) the new levy became applicable to all clearances made on the Budget day after 17.00 hours. 3. Appearing for the appellants, Shri S.N. Mathur, Consultant, submitted that the goods in question being pre-Budget stock, were not liable to the levy of special excise duty which came into force only from the midnight intervening 28-2-78-1-3-78. The undertaking in terms of Rule 224 was only with reference to any enhancement in an already existing levy (which was not the case here) and did not apply to instances of new levies as in the present case. In accordance with the Provisional Collection of Taxes Act, even enhancement in duty would take effect from only the mid-night following the presentation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any duty) unless an application for such removal in the prescribed form has been presented by the licensee to the proper officer and such application has been acknowledged by the proper officer, before 5.00 p.m. on the working day immediately preceding the date aforesaid : (The first proviso is not relevant for our present purpose). Provided further that where a licensee intends to remove goods from a factory or a warehouse after 5.00 p.m. on the date aforesaid, he shall also obtain the permission of the Central Government under sub-rule (2-A) for such removal. [Explanation. - For the purpose of sub-rule (2) and sub-rule (2-A), goods includes goods which may come into existence at any time after the presentation of an applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial excise duty would be attracted on such clearances. That, however, is not the question here. The question is whether the special excise duty was attracted on clearances of urea fertilizer effected on the Budget day between 17.00 hours and 24.00 hours. 8. Clause 37 of the Finance Bill, 1978, which levied special duties of excise, was covered by a declaration made under the Provisional Collection of Taxes Act of 1931. Section 4 of this Act provides that a declared provision shall have the force of law immediately on the expiry of the day on which the Bill containing it is introduced. In other words, Clause 37 of the Finance Bill, 1978 came into force as law on the expiry of 28-2-1978, the day on which the Finance Bill, 1978 was introduc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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