Retrospective excise duty set-off on inputs applied from 1 March 1986 under the exemption law.

Retrospective set-off of excise duty on inputs was held available from 1 March 1986 under Section 2 of the Central Duties of Excise (Retrospective Exemption) Act, 1986. The Tribunal's approach, based on the earlier Jammu Bottling ruling, was treated as consistent with the governing precedent because the present matter was materially identical apart from the date of the subsequent notification issued on 3 April 1986. The retrospective benefit therefore applied from the statutory date, and the appeal failed.

---

---

Issues: Whether the benefit of the subsequent notification granting set-off of excise duty on inputs could be given retrospectively from 1 March 1986 in view of Section 2 of the Central Duties of Excise (Retrospective Exemption) Act, 1986.

Analysis: The Tribunal had applied the earlier decision in Jammu Bottling and held that the later notification issued on 3 April 1986 must operate from 1 March 1986. The Court noted that the earlier decision had already stood affirmed and that the present case was materially identical, the only difference being the date of the subsequent notification. On that basis, the reasoning adopted by the Tribunal was consistent with the governing precedent.

Conclusion: The retrospective benefit of the subsequent notification was available from 1 March 1986, and the appeal failed.

---