Enhanced duty on budget-day clearances applies after 5 PM; Rule 224(2A) undertaking remains operative for notified increases.

Duty enhanced by notification was held applicable to goods cleared after 5 PM on the date of presentation of the Finance Bill, following the Tribunal's earlier view on budget-day clearances. The enhanced rate therefore applied to the impugned removals. The undertaking under Rule 224(2A) was treated as operative where the increase in duty flowed from the applicable notified duty structure, so it could be invoked to support payment at the enhanced rate. The appeals were thus decided against the assessee.

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Issues: Whether duty was chargeable at the enhanced rate on goods cleared after 5 PM on the date of presentation of the Finance Bill, and whether the undertaking under Rule 224(2A) could be invoked where the enhancement was effected by notification.

Analysis: The appeals turned on the effect of a duty enhancement made by notification on clearances effected on budget day. The Tribunal followed its earlier decision on the same point and held that the enhanced rate applied to clearances made after the relevant time on the date of presentation of the Finance Bill. The undertaking taken under Rule 224(2A) was treated as operative for payment of duty at the enhanced rate where the enhancement flowed from the applicable duty structure and notification.

Conclusion: Duty at the enhanced rate was payable on the impugned clearances, and the undertaking under Rule 224(2A) was invokable. The appeals were against the assessee.

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