Prospective exemption notification amendment denied retrospective benefit before the stated commencement date

Notification No. 55/92 amended Notification No. 175/86 by withdrawing the benefit of clause (b) of the first proviso for units that had claimed exemption in a preceding financial year. Notification No. 67/92 restored that benefit only from 22-5-1992, and its text did not support retrospective operation. Accordingly, the exemption under Notification No. 175/86 was not available for the period from 1-4-1992 to 21-5-1992, and relief granted for that earlier period could not stand.

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Issues: Whether the assessees were entitled to the benefit of Notification No. 175/86 for the period from 1-4-1992 to 21-5-1992 in view of Notification No. 55/92 and Notification No. 67/92.

Analysis: Notification No. 55/92 substituted the second proviso to paragraph 4 of Notification No. 175/86 and withdrew the benefit of clause (b) of the first proviso for units that had availed exemption under clause (a) in any preceding financial year. Notification No. 67/92 restored that benefit only from 22-5-1992. The language of Notification No. 67/92 did not support any retrospective operation, and the restored benefit could not be extended to the earlier period.

Conclusion: The assessees were not entitled to the benefit of Notification No. 175/86 for the period from 1-4-1992 to 21-5-1992, and the Revenue succeeded.

Final Conclusion: The exemption was available only prospectively from 22-5-1992, so the orders granting relief for the earlier period could not be sustained.

Ratio Decidendi: A restoring amendment to an exemption notification operates prospectively where the text expressly fixes its commencement date and does not indicate retrospective effect.

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