Provisional collection of taxes applies only to duty increases; mere tariff reclassification did not shift plastic goods immediately.

A declaration under Section 3 of the Provisional Collection of Taxes Act, 1931 takes immediate effect only where the Bill imposes or increases customs or excise duty. Where the Finance Bill, 1982 merely changed the tariff description of non-specified plastic articles such as radio cabinets and knobs, without imposing a new duty or increasing the 50% ad valorem rate under Item 15A(2), the change did not operate immediately on introduction of the Bill. The goods therefore remained classifiable under Item 15A(2) until enactment of the Finance Bill, 1982, and the duty demand for the relevant period was upheld.

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Issues: Whether non-specified articles of plastics such as radio cabinets and knobs continued to fall under Item 15A(2) of the Central Excise Tariff until enactment of the Finance Bill, 1982, or shifted immediately to Item 68 on the introduction of the Finance Bill by reason of the declaration under the Provisional Collection of Taxes Act, 1931.

Analysis: Section 3 of the Provisional Collection of Taxes Act, 1931 applies only where a Bill provides for the imposition or increase of customs or excise duty. The Finance Bill, 1982 did not impose a new duty on the goods in question, nor did it increase the rate of duty under Item 15A(2), which remained 50% ad valorem. The change brought about by the Bill was a change in tariff description and not a change attracting immediate operation under Section 3. The declaration appended to the Bill therefore did not give immediate effect to the reclassification for the goods in dispute. The Tribunal distinguished the cited decision on the ground that, in that case, the budget change had entailed an actual increase in duty.

Conclusion: The goods continued to remain under Item 15A(2) until the Finance Bill, 1982 was enacted, and the duty demand for the relevant period was valid. The appeal of the Revenue succeeded.

Ratio Decidendi: The declaration under Section 3 of the Provisional Collection of Taxes Act, 1931 takes immediate effect only where the Bill itself imposes or increases excise duty on the goods; a mere change in tariff description without any increase in duty does not attract that immediate effect.

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