Prospective effect of exemption notification preserved old benefit until the later notification's effective date

Notification No. 138/86 was expressly stated to take effect from 1 April 1986, so the earlier exemption under Notification No. 25/84 continued to govern the period up to 31 March 1986. The new notification could not be applied retrospectively to withdraw the exemption for March 1986. On that basis, the respondents remained entitled to the benefit of the old notification until the effective date of the later notification, and the department's appeal failed.

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Issues: Whether the respondents were entitled to continue availing the benefit of Notification No. 25/84 dated 1-3-1984 up to 31-3-1986 despite Notification No. 138/86 dated 1-3-1986.

Analysis: Notification No. 138/86 specifically stated that it would come into force from 1st April, 1986. The earlier exemption therefore continued to govern the period up to 31-3-1986, and the new notification could not be applied to deny the benefit for March, 1986.

Conclusion: The respondents were entitled to the benefit of the old notification up to 31-3-1986 and the department's appeal failed.

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