Retrospective excise exemption applied to substituted tariff heading, so omission from the original notification could not bar relief.

The amending exemption notification was treated as retrospective under the Central Duties of Excise (Retrospective Exemption) Act, 1986, so the substituted tariff heading had to be read into the earlier small-scale exemption notification from 1-3-1986. On that basis, exemption could not be denied merely because the later heading was omitted from the original annexure. The notification's own conditions still governed eligibility, so the assessee's entitlement had to be examined on merits by the excise authority under the applicable exemption terms.

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Issues: Whether the amending exemption notification, read with the Central Duties of Excise (Retrospective Exemption) Act, 1986, operated retrospectively so that the substituted tariff heading had to be read into the earlier small scale exemption notification from 1-3-1986, and whether exemption could be denied merely because the later heading was not originally mentioned.

Analysis: The amending notification dated 24-4-1986 was covered by the retrospective exemption legislation and was deemed to have effect from 1-3-1986. On that footing, the later tariff heading had to be read in place of the earlier incorrect heading in the small scale exemption notification from the original date. The exemption notification itself remained subject to its own conditions, so the authorities had to examine the assessee's entitlement on merits. Mere omission of the later heading in the original annexure could not, by itself, defeat the claim.

Conclusion: The substituted heading was to be treated as effective from 1-3-1986, and exemption could not be refused solely on the ground that the later heading was not mentioned in the original notification. The assessee's eligibility was left to be determined by the proper excise authority under the notification's conditions.

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