Prospective operation of fiscal notifications bars retrospective refund claims after deletion of a drawback condition.

Refund of service tax drawback for exports made in April to June 2008 was not available because Notification No. 41/2007-S.T., then in force, required that no drawback of service tax be availed on the exported goods. The later amendment dated 7-12-2008 deleting that condition was held not to operate retrospectively, as a fiscal notification is ordinarily prospective unless the amendment is clearly clarificatory. Applying the amended position to earlier exports would impermissibly enlarge the refund benefit for past transactions. The Revenue's appeals were therefore allowed.

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Issues: Whether refund of service tax drawback benefit was admissible for exports made during April to June 2008 when Notification No. 41/2007-S.T. then in force required non-availment of drawback of service tax, and whether the later amendment omitting that condition could be applied retrospectively.

Analysis: The notification applicable during the refund period expressly contained the condition that the exported goods should not have availed drawback of service tax. The subsequent amendment dated 7-12-2008 removing that condition could not be read as operating retrospectively, as a notification is ordinarily prospective unless it is clarificatory in nature. Applying the amended position to exports made earlier would amount to giving the amendment retrospective effect, which was impermissible on the facts.

Conclusion: The refund benefit was not admissible for the relevant period, and the appeals of the Revenue were allowed.

Final Conclusion: The decision proceeds on the settled principle that an exemption or refund notification operates prospectively unless the amendment is clearly clarificatory, and the later deletion of a condition cannot enlarge benefits for prior exports.

Ratio Decidendi: An amendment to a fiscal notification operates prospectively unless it is clearly clarificatory, and the amended exemption cannot be applied to transactions completed before the amendment took effect.

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