Accrued rebate rights cannot be withdrawn by later circulars or amendments without clear retrospective authority.

A rebate claimed by a unit enjoying area-based exemption in Kutch could not be denied for the relevant period merely because a later circular treated the duty as refundable under the exemption scheme or because a subsequent amendment introduced a rebate bar. The text states that the circular had the effect of overriding the rebate notification, but the later restriction was not expressed to operate retrospectively, and the Finance Act, 2008 amendment did not lawfully extinguish an accrued vested right for the period in question. The rebate claim was therefore upheld for the relevant period, and retrospective denial was treated as impermissible.

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Issues: Whether rebate was admissible to a unit availing area-based exemption in Kutch for the relevant period, and whether the circular and subsequent amendment could operate to deny such rebate retrospectively.

Analysis: The Court noted that the circular dated 8-12-2006, which treated duty paid as refundable to a unit enjoying the exemption and thereby denied rebate, had the effect of overriding the rebate notification. It further noted that the later amendment by Notification No. 37/2007-C.E. (N.T.) dated 17-9-2007 introduced a bar on rebate, but the notification did not state that the bar would operate retrospectively. The Court also noticed the retrospective amendment by the Finance Act, 2008 and the claim that the assessee had a vested right for the impugned period.

Conclusion: Rebate could not be denied for the relevant period on the basis of the circular or the later amendment, as retrospective application was not legally permissible and the vested right to claim rebate was not taken away.

Final Conclusion: The claim for rebate for the relevant period was upheld and the challenge to the denial of rebate did not succeed.

Ratio Decidendi: A rebate entitlement already accrued under the governing notification cannot be curtailed by a later circular or amendment unless retrospective operation is clearly authorised and legally permissible.

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