Retrospective exemption on textile printing screens denied for earlier clearances; refund applies only from the notification date.

Retrospective refund was unavailable for flat bed textile printing screens cleared between 31-3-1986 and 31-10-1989 because the later exemption notification of 1-11-1989 did not operate backward. Duty remained chargeable after the 1986 tariff change unless an exemption applied, and the retrospective benefit under Section 11C was extended only for the specific period covered by Notification No. 39/90. The exemption for printing frames used in another factory of the same manufacturer took effect only from 1-11-1989, so refund was admissible only from that date onward.

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Issues: Whether the assessee was entitled to refund of duty on flat bed textile printing screens cleared during 31-3-1986 to 31-10-1989 on the basis of retrospective application of the exemption notification issued on 1-11-1989.

Analysis: Prior to the later exemption, duty was chargeable on the goods in question after the tariff change in 1986 except where an exemption was in force. Exemption for printing frames used within the factory of production was introduced by Notification No. 201/87 and the benefit of Section 11C of the Central Excise Act, 1944 was extended retrospectively only for the specified period by Notification No. 39/90 dated 10-10-1990. The notification issued on 1-11-1989, however, covered printing frames used in any other factory of the same manufacturer and did not provide retrospective effect.

Conclusion: The assessee was not entitled to retrospective benefit of Notification No. 190/89 for the earlier period, and refund was admissible only from 1-11-1989 onwards as held by the authorities below.

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