Broad meaning of duty of excise upheld, bringing special duty within immediate levy under the Finance Bill declaration.

The expression "duty of excise" in the Provisional Collection of Taxes Act, 1931 is construed broadly and is not confined to basic excise duty under the Central Excises and Salt Act, 1944. Earlier Delhi High Court rulings based on the special definition in Section 280ZD of the Income-tax Act, 1961 were not controlling, because that definition was context-specific. A later definition in the Central Excise Laws (Amendment and Validation) Act, 1982 was likewise limited to that enactment and did not govern the Provisional Collection of Taxes Act. On the ordinary meaning adopted consistently with Modi Rubber, the phrase includes special duty of excise, giving immediate effect to the Finance Bill, 1980 declaration under clause 5(1).

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Issues: Whether the expression "duty of excise" in the Provisional Collection of Taxes Act, 1931 includes special duty of excise, so that the declaration inserted in the Finance Bill, 1980 gave immediate effect to the levy under clause 5(1).

Analysis: Section 3 of the Provisional Collection of Taxes Act, 1931 is framed in broad terms and contains no definition restricting "duty of excise" to basic excise duty under the Central Excises and Salt Act, 1944. The earlier Delhi High Court decisions relied on by the appellants turned on the special definition of "duty of excise" in Section 280ZD of the Income-tax Act, 1961 and therefore did not govern the present issue. The special definition in the Central Excise Laws (Amendment and Validation) Act, 1982 was also confined to that enactment and could not control the construction of the Provisional Collection of Taxes Act. On ordinary understanding, and consistently with the reasoning in Modi Rubber, "duty of excise" comprehends all duties of excise, including special duty of excise.

Conclusion: The declaration under the Provisional Collection of Taxes Act, 1931 validly applied to clause 5(1) of the Finance Bill, 1980, and the special duty of excise was leviable.

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