Later rescission of exemption notification cannot reopen completed clearances calculation for an earlier financial year.

A later rescission of an exemption notification did not retroactively change the aggregate value of clearances for a completed financial year when the earlier exemption was in force during that year. The computation for 1984-85 remained fixed by the exemption then applicable, and the phrase "for the time being in force" was applied with reference to the period of actual clearances, not by reopening a settled year after rescission. Explanation II(a) was treated as limited to cases where the exemption itself depended on value or quantity of clearances in a financial year, so it did not justify revising the earlier computation. The assessee remained entitled to small scale exemption.

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Issues: Whether the rescission of the exemption notification on 27-2-1986 could alter the aggregate value of clearances for the earlier financial year 1984-85 for the purpose of denying small scale exemption for the subsequent period.

Analysis: The exemption under Notification No. 167/79-C.E. was available during the relevant earlier financial year, and the assessee had already qualified for small scale exemption under Notification No. 77/85-C.E. on the basis of the aggregate clearances determined with reference to that year. The phrase "for the time being in force" was held to operate with reference to the period when the clearances were made, and the later rescission could not retroactively disturb the completed computation for 1984-85. The exclusion in Explanation II(a) was regarded as applicable only where the exemption itself was based on the value or quantity of clearances in a financial year, which did not justify reopening the earlier year's position because of the later rescission.

Conclusion: The rescinding notification did not affect the aggregate value of clearances for financial year 1984-85, and the assessee was entitled to the claimed exemption.

Final Conclusion: The appeal succeeded on the interpretation of the exemption notification, and the assessee was held entitled to relief.

Ratio Decidendi: A later rescission of an exemption notification does not retroactively alter the aggregate clearances already computed for a completed financial year when the earlier exemption was in force during that year.

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