Exemption notifications survive re-enactment under the General Clauses Act until superseded, preserving interim exemption coverage.

An exemption notification issued under Rule 8(1) of the Central Excise Rules, 1944 continued to operate after the Finance Act, 1972 altered the tariff item, because the power to grant exemption remained under the same rule and section 24 of the General Clauses Act, 1897 preserves notifications made under a repealed enactment so long as they are consistent with the re-enacted provision. The later notification issued in July 1972 did not ingly terminate the earlier exemption during the intervening period. As a result, clearances made before the fresh notification remained covered by the exemption and the duty demand was not sustainable.

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Issues: Whether the exemption notification issued for hard waste under the Central Excise Rules continued to apply after the tariff item under which the goods were assessable was altered by the Finance Act, 1972, until it was expressly superseded by a fresh notification.

Analysis: The exemption was originally granted under Rule 8(1) of the Central Excise Rules, 1944. When the Finance Act, 1972 amended the tariff and moved the goods from the earlier item to a new tariff item, the power to grant exemption remained under the same rule. Section 24 of the General Clauses Act, 1897 provides that where a Central Act is repealed and re-enacted, notifications issued under the repealed enactment continue in force so far as they are consistent with the re-enacted provisions and remain operative until superseded by a fresh notification. The later notification issued in July 1972 did not mean the earlier notification had ceased during the intervening period.

Conclusion: The earlier exemption notification continued in force during the interregnum, and the duty demand for clearances made before the later notification could not be sustained; the issue is decided in favour of the assessee.

Ratio Decidendi: Under Section 24 of the General Clauses Act, 1897, an exemption notification issued under a repealed enactment continues to operate under the re-enacted provision until it is superseded, unless the later law expressly provides otherwise or the notification is inconsistent with the new enactment.

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