Project import exemption for captive power plants cannot be denied by a later exclusion inserted after registration.

A captive power plant was held eligible for project import assessment under the applicable exemption notification because the import registration was made in July/August 1985, when Notification No. 71/85-Cus. and then Notification No. 133/85-Cus. governed the field. The exclusion for captive power plants was inserted only later by Notification No. 306/86-Cus. with effect from 1-5-1986, and could not be read retrospectively merely because it was described as clarificatory. The exemption position existing on the date of registration therefore prevailed, and the Revenue's challenge failed.

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Issues: Whether a captive power plant was eligible for project import assessment under the applicable exemption notification prior to 1-5-1986.

Analysis: The application for project import registration was made in July/August 1985, when Notification No. 71/85-Cus. and thereafter Notification No. 133/85-Cus. governed the field. The restrictive explanation excluding captive power plants was inserted only later by Notification No. 306/86-Cus. with effect from 1-5-1986. As no such exclusion existed when the import was registered, the later explanation could not be read backwards merely because it was said to be clarificatory.

Conclusion: The captive power plant remained eligible under Notification No. 133/85-Cus. for the relevant period, and the Revenue's challenge failed.

Final Conclusion: The exemption position applicable at the time of registration was upheld, leaving the importer entitled to project import treatment and defeating the Revenue's appeal.

Ratio Decidendi: A subsequent exclusion inserted into an exemption notification will not be applied retrospectively to defeat eligibility where no such restriction existed on the relevant date.

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