Prospective operation of exemption notification bars retrospective benefit before the stated restoration date.

An exemption benefit restored by an amending notification operates prospectively from the date expressly specified, unless the text clearly gives it retrospective effect. Here, Notification No. 67/92 restored clause (b) of paragraph 4 only from 22-5-1992, after Notification No. 55/92 had excluded that benefit where clause (a) exemption had been availed in a preceding financial year. The restored benefit could not be applied to the earlier period from 1-4-1992 to 21-5-1992, and the assessee could not claim exemption for that interval.

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Issues: Whether the benefit of clause (b) of paragraph 4 of Notification No. 175/86, as amended by Notification No. 55/92 and Notification No. 67/92, was available for the period from 1-4-1992 to 21-5-1992.

Analysis: Notification No. 55/92 substituted the second proviso to paragraph 4 and excluded the benefit of clause (b) where the manufacturer had availed the exemption under clause (a) in any preceding financial year. Notification No. 67/92 inserted a further proviso restoring the benefit of clause (b) only from 22-5-1992. The language of the later notification made the restoration operative prospectively from that date, and there was no basis to treat it as having retrospective effect for the earlier period.

Conclusion: The benefit of clause (b) was not available for the period from 1-4-1992 to 21-5-1992, and the finding in favour of the assessee on that period was set aside.

Final Conclusion: The exemption under the notification could operate only prospectively from 22-5-1992, so the Revenue succeeded on the disputed period.

Ratio Decidendi: An exemption restored by an amending notification takes effect prospectively from the date specified in the notification and cannot be given retrospective operation in the absence of express language.

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