TaxTMI 
TaxTMI 
1984 (12) TMI 299
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....filed before it. 2. The facts of the case, in brief, are that M/s. Indian Explosives Ltd., the appellants : (hereinafter referred to as IEL) are engaged in the manufacture of urea fertilizer. On the day appointed for presentation of the annual Budget of the Central Government for 1978, namely, 28-2-1978, IEL applied for and secured from the Central Excise authorities permission for taking clearance of the goods between 17.00 hours and 24.00 hours on 28-2-1978 on furnishing an undertaking that they would pay the differential amount of duty in case there was an increase in the rate of duty applicable to the goods on the day following 28-2-1978. This was in terms of Central Excise Rule 224(2A). The quantity of urea which was cleared be....
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....ce the incidence of excise taxation. However, he said that Rule 224 applied to all excise duties and that in terms of Rule 224(2A) the new levy became applicable to all clearances made on the Budget day after 17.00 hours. 3. Appearing for the appellants, Shri S.N. Mathur, Consultant, submitted that the goods in question being pre-Budget stock, were not liable to the levy of special excise duty which came into force only from the midnight intervening 28-2-78-1-3-78. The undertaking in terms of Rule 224 was only with reference to any enhancement in an already existing levy (which was not the case here) and did not apply to instances of new levies as in the present case. In accordance with the Provisional Collection of Taxes Act, even ....
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....oduction in the House of the People of any Finance Bill or any Bill for the imposition on increase of any duty) unless an application for such removal in the prescribed form has been presented by the licensee to the proper officer and such application has been acknowledged by the proper officer, before 5.00 p.m. on the working day immediately preceding the date aforesaid : (The first proviso is not relevant for our present purpose). Provided further that where a licensee intends to remove goods from a factory or a warehouse after 5.00 p.m. on the date aforesaid, he shall also obtain the permission of the Central Government under sub-rule (2-A) for such removal. [Explanation. - For the purpose of sub-rule (2) and sub-rule (2-A), "go....
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....sideration in the Sirpur Paper Mills case (supra), and the Bench, by a majority of 2, took the view that special excise duty would be attracted on such clearances. That, however, is not the question here. The question is whether the special excise duty was attracted on clearances of urea fertilizer effected on the Budget day between 17.00 hours and 24.00 hours. 8. Clause 37 of the Finance Bill, 1978, which levied special duties of excise, was covered by a declaration made under the Provisional Collection of Taxes Act of 1931. Section 4 of this Act provides that a declared provision shall have the force of law immediately on the expiry of the day on which the Bill containing it is introduced. In other words, Clause 37 of the Finance ....