Prospective operation of exemption notification bars refund of duty paid before the amendment's effective date.

An amending exemption notification enhancing the eligibility threshold operates prospectively from its date of issue unless the statute expressly permits retrospectivity. Duty paid on clearances made before the notification's commencement remains lawfully payable, and the amendment cannot be applied to reopen that liability or justify a refund for the earlier period. The assessee was entitled to exemption only from 27-4-1989, not for clearances made between 1-4-1989 and 26-4-1989, so the refund claim failed and the result favoured Revenue.

---

---

Issues: Whether Notification No. 119/89-C.E. dated 27-4-1989, which enhanced the eligibility limit under the exemption scheme, could be given effect from 1-4-1989 so as to justify refund of duty paid on clearances made between 1-4-1989 and 26-4-1989.

Analysis: The earlier exemption notification continued to operate, but the amending notification issued under Rule 8(1) became effective only from the date of its issue. A notification enhancing the exemption threshold cannot unsettle duty that was lawfully paid on clearances made before its commencement. Giving the amendment effect from 1-4-1989 would amount to a retrospective operation, which is not permissible in the absence of such power. The earlier duty payment for the period before 27-4-1989 therefore remained valid, and the refund could not be sustained.

Conclusion: The notification operated only prospectively from 27-4-1989. The assessee was entitled to the exemption from that date, but not to refund of duty for clearances made from 1-4-1989 to 26-4-1989. The issue is decided in favour of Revenue.

Final Conclusion: The appeal fails because the amended exemption notification did not authorise refund for the period before its effective date.

Ratio Decidendi: An amending exemption notification takes effect prospectively from its date of issue unless the statute expressly authorises retrospectivity, and it cannot be used to reopen or refund duty validly paid for an earlier period.

---