Exemption notification interpretation bars splitting a period to apply different clearance limits unless the text expressly permits it.

An exemption notification must be applied according to the condition in force for the relevant period, and a month or year cannot be artificially split to apply two different clearance limits unless the notification expressly allows it. The earlier notification tested clearances against 10% of the immediate preceding month's production, while the amended notification substituted 10% of the preceding year's production from 20.03.1990. Because neither notification permitted bifurcation of the same period, the refund claim based on splitting March 1990 was rejected as unsustainable.

---

---

Issues: Whether the assessee was entitled to refund by splitting the month of March 1990 into periods before and after the amendment brought in by Notification No. 30/90-C.E., so as to apply the earlier monthly production limit for the first part and the amended yearly production limit for the later part.

Analysis: The exemption under Notification No. 37/89-C.E. required the quantity of clearances to be tested against 10% of the total production of the immediate preceding month. Notification No. 30/90-C.E., which came into force on 20.03.1990, substituted that test with 10% of the total production of the preceding year. Neither notification provided for any bifurcation of a month or year into two parts for applying two different methods within the same period. Accepting the assessee's approach would amount to rewriting the notification. The question being one of law on undisputed facts, no interference with the rejection of refund was warranted.

Conclusion: The claim for refund was not sustainable and the contention that March 1990 could be split for applying different exemption limits was rejected.

Ratio Decidendi: In interpreting an exemption notification, the court must apply the condition as it stands for the relevant period and cannot create a bifurcated regime within that period unless the notification itself so provides.

---