Enhanced excise duty on budget-day clearances applied where notification and undertaking supported the higher levy.

Enhanced excise duty applied to cement cleared after 5 PM on budget day where the increase was imposed by notification and the assessee had furnished an undertaking under Rule 224(2A) to pay duty at the enhanced rate from the relevant date. The Tribunal followed its earlier view on the same issue and rejected the contention that the absence of a tariff schedule change prevented application of the higher levy. On that basis, the enhanced duty was held payable on the relevant clearances, and the appeals failed.

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Issues: Whether the enhanced rate of excise duty applied to cement cleared after 5 PM on the day of presentation of the Finance Bill, where the increase was effected by notification and the assessee had furnished an undertaking under Rule 224(2A) of the Central Excise Rules, 1944.

Analysis: The liability was examined in the context of clearances made on budget day after the Finance Bill was presented. The duty enhancement operated through notification, and the undertaking covered payment of duty at the enhanced rate that became applicable from the date immediately following presentation of the budget. The earlier Tribunal view on the same issue was followed, and the argument that the tariff schedule itself had not changed was not accepted as excluding the enhanced levy.

Conclusion: The enhanced duty rate was payable on the clearances in question, and the appeals failed.

Final Conclusion: The decision affirms that where duty is enhanced by notification and the assessee has undertaken to pay the enhanced duty, the higher rate applies to the relevant budget-day clearances.

Ratio Decidendi: An enhancement of excise duty through a valid notification can be enforced for budget-day clearances where the assessee has undertaken to pay duty at the enhanced rate from the relevant date.

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