In-factory use of nickel perforated cylinders qualified for exemption; later notification could not be applied retrospectively.

Nickel perforated cylinders manufactured and used within the same factory for textile printing fell within the exemption for gravure printing cylinders and nickel perforated rotary cylinder screens used in the factory of production. The later notification relied on by the department could not be applied retrospectively to earlier clearances. On the recorded finding of in-factory use, the exemption applied and the duty demand was not sustainable.

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Issues: Whether the nickel perforated cylinders manufactured in the factory and used within the factory for printing textile were entitled to exemption from duty under the relevant notification.

Analysis: The goods were manufactured for use in the appellant's own factory for printing purposes. The exemption claimed was under the notification covering gravure printing cylinders and nickel perforated rotary cylinder screens when used within the factory of production for printing. The later notification relied upon by the department could not apply retrospectively to clearances made earlier. The recorded finding that the cylinders were used within the factory brought the goods within the exemption entry.

Conclusion: The exemption was available and the duty demand could not be sustained.

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