Deferred exemption amendment and trade notice clarification restored earlier relief, making the demand for the disputed period unsustainable.

A restrictive exemption amendment under Notification No. 55/92-C.E. was treated as not applying to the disputed period because the later amending Notification No. 67/92-C.E. deferred the amended proviso and the Board's trade notices clarified that the earlier exemption position stood restored for unregistered units under Notification No. 175/86-C.E. The combined effect of the amendment and clarification meant the denial of exemption for the covered period was unsustainable, and the assessee was entitled to the benefit.

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Issues: Whether Notification No. 55/92-C.E. dated 31-3-1992 applied to deny exemption for the period 4-4-1992 to 15-4-1992, or whether the subsequent Notification No. 67/92-C.E. and departmental clarification restored the earlier position for the relevant period.

Analysis: The order proceeded on the basis that Notification No. 55/92-C.E. came into force from 1-4-1992, and the contention that it became effective only when made available for sale was rejected. At the same time, the subsequent amending Notification No. 67/92-C.E. deferred the amended second proviso to paragraph 4, and the Board's clarification published through trade notices stated that the position prevailing before Notification No. 55/92-C.E. stood restored for unregistered units claiming exemption under the first proviso to paragraph 4 of Notification No. 175/86-C.E. The combined effect of the amendment and clarification showed that the intended position for the relevant period was not to apply the restrictive amendment.

Conclusion: The demand based on Notification No. 55/92-C.E. for the relevant period was held unsustainable and the assessee succeeded.

Ratio Decidendi: Where a later amending notification and departmental clarification defer the operation of a restrictive exemption amendment, the amendment cannot be applied to deny exemption for the covered period notwithstanding its initial stated commencement date.

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