VIKRANT TYRES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) This matter has come up before the Larger Bench by virtue of a reference made by the referral Bench seeking decision on the following issue : -

(2.) The necessity for making this reference, as could be seen from the referral order, appears to have arisen on account of conflicting judgments of the different Benches of the Tribunal on the above said issue, involving interpretation of Rule 224(2A), in the following cases : -

(3.) The appellants who are engaged in the manufacture of excisable goods falling under Chapter 40 of Central Excise Tariff Act, 1985, cleared the goods on the eve of the budget day, after taking due permission of the Commissioner, by paying duty at the prevailing rate i.e.@ 24% BED and 6% SED. They also gave undertaking in terms of Rule 224(2A) for paying differential duty, in the event of enhancement in the rates of duty in the budget. On the presentation of the budget, the rates of duty stood changed to 16% BED and 16% SED vide Notification No. 6/2000 and 7/2000, dated 1 -3 -2000.