Tariff entry change and SSI exemption turn on when a Finance Bill becomes operative, not on mere presentation.

A proposed tariff entry change does not take legal effect merely because the Finance Bill is presented; operative change requires a declaration under the Provisional Collection of Taxes Act, 1931. On that basis, a shift of goods from one tariff heading or sub-heading to another, by itself, does not automatically defeat SSI exemption under Notification No. 1/93 from the date of Bill presentation. The matter was therefore required to be reconsidered against the binding Supreme Court ruling, and the availability of the exemption was remitted for fresh adjudication on the correct legal basis.

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Issues: Whether the assessee was entitled to SSI exemption under Notification No. 1/93 for the period 16 March 1995 to 24 May 1995 after the tariff entry for its product shifted from one sub-heading to another on presentation of the Finance Bill.

Analysis: The Tribunal applied the principle that a proposed change in tariff entry does not become operative merely on presentation of the Finance Bill unless a declaration under Section 3 of the Provisional Collection of Taxes Act, 1931 is made. A shift of goods from one tariff heading or sub-heading to another, by itself, does not amount to an immediate change attracting denial of an exemption notification from the date of presentation of the Bill. In view of the binding Supreme Court ruling on the point, the earlier authorities had not examined the matter on the correct legal basis.

Conclusion: The issue of availability of SSI exemption was remitted for fresh adjudication in the light of the Supreme Court ruling.

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