Prospective operation of exemption notifications bars retrospective refund where the amendment contains no express backdated effect.

Exemption entitlement is determined by the law in force on the date of clearance, so duty payable on goods is assessed at the rate prevailing on that date. An amending exemption notification did not contain any express retrospective clause, and nothing in its language showed an intention to relate the benefit back to an earlier period. The amended exemption therefore operated only prospectively from 27-4-1989, and the assessee was not entitled to exemption or refund for clearances made before that date. The denial of refund for the pre-amendment period was upheld.

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Issues: Whether the benefit of the amended exemption notification could be applied retrospectively to clearances made before the date of amendment, so as to justify refund of duty paid for the prior period.

Analysis: Duty becomes payable with reference to the date of clearance of the goods and at the rate prevailing on that date. The units were not eligible for exemption during the period from 1-4-1989 to 26-4-1989, and duty paid for that period was therefore correctly paid. The amending notification changed the eligibility criterion only from 27-4-1989, and there was nothing in its language to indicate that the benefit was to relate back to 1-4-1989. In the absence of an express retrospective provision, the notification operates only prospectively.

Conclusion: The amended notification did not operate retrospectively and the assessee was not entitled to exemption or refund for the period prior to 27-4-1989.

Final Conclusion: The denial of refund for the pre-amendment period was upheld and the challenge to that determination failed.

Ratio Decidendi: An exemption or amending notification operates prospectively unless it expressly provides for retrospective effect, and eligibility for exemption is determined by the law in force on the date of clearance.

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