Retrospective excise exemption for power pump parts applied from 1-3-1986 under the amended notification.

Notification No. 236/86-C.E. amending the exemption for parts of power driven pumps was treated as falling within the Central Duties of Excise (Retrospective Exemption) Act, 1986. The retrospective exemption scheme deemed qualifying notifications issued in the specified period to operate from 1-3-1986, so the restored exemption applied to the relevant pump parts from that date. The attached conditions were not in dispute, and the appellate authority's contrary view was rejected, leaving the assistant collector's order in force.

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Issues: Whether the exemption granted by Notification No. 236/86-C.E. to parts of power driven pumps was covered by the Central Duties of Excise (Retrospective Exemption) Act, 1986 and operated retrospectively from 1-3-1986.

Analysis: The parts of power driven pumps had enjoyed exemption prior to 1-3-1986. After the new tariff structure under the Central Excise Tariff Act, 1985, Notification No. 64/86-C.E. provided a concessional rate, and Notification No. 236/86-C.E. amended it to extend exemption to the relevant parts. The retrospective exemption legislation deemed notifications issued within the specified period to have effect from 1-3-1986, and the exemption for such parts was treated as having been restored from that date. The conditions attached to the amended notification were not in dispute.

Conclusion: The amended exemption notification was covered by the retrospective exemption legislation and applied from 1-3-1986. The order of the appellate authority was incorrect and the assistant collector's order was restored.

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