Publication of fiscal withdrawal matters: deemed credit taken before public notice was held lawful and not retrospective.

A statutory order withdrawing deemed credit under Rule 57G(2) of the Central Excise Rules, 1944 takes effect only when it is properly published in the Gazette and made known to the public. On the facts, the withdrawal became known through a trade notice dated 24-11-1987, so deemed credit taken before that date was before the withdrawal became operative. The credit taken between 2-11-1987 and 24-11-1987 was therefore not irregular or unlawful, and the issue was decided in favour of the assessee.

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Issues: Whether the withdrawal of deemed credit under Rule 57G(2) of the Central Excise Rules, 1944 could operate against the assessee for the period before it was published in the Gazette and made known to the public.

Analysis: The withdrawal of deemed credit was issued as a statutory order. Such a statutory notification or order takes effect only when it is published in the Gazette of the Government of India and circulated so as to be made known to the public. On the facts, the public came to know of the withdrawal only through the trade notice dated 24-11-1987. The deemed credit taken before that date was therefore taken before the withdrawal became operative.

Conclusion: The deemed credit taken between 2-11-1987 and 24-11-1987 was not irregular or unlawful and the issue is answered in favour of the assessee.

Ratio Decidendi: A statutory order withdrawing a fiscal concession is effective only upon proper publication and communication to the public, and cannot be enforced retrospectively before such publication.

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