Clarificatory excise notification applies retrospectively, preserving exemption for twisted bars and rods under the earlier exemption scheme.

Twisted bars and rods of iron or non-alloy steel were held entitled to exemption under Notification No. 202/88 because the later amending Notification No. 170/89 was treated as clarificatory and therefore retrospective. The Tribunal rejected the view that the amendment operated only prospectively, relying on an earlier decision that had already settled the issue. On that basis, the exemption remained available for the relevant period and the excise demand was not sustainable.

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Issues: Whether twisted bars and rods of iron or non-alloy steel were liable to Central Excise Duty for the relevant period and whether the benefit of Notification No. 202/88 was available in view of the amending Notification No. 170/89 dated 16-8-1989.

Analysis: The Tribunal noted that the Collector had denied the exemption on the basis that the amending notification operated only prospectively. It held that the controversy had already been settled by a prior Tribunal decision treating the amending notification as clarificatory in nature. A clarificatory notification applies retrospectively, and the earlier ruling governed the present dispute.

Conclusion: The benefit of Notification No. 202/88 was held applicable and the demand was not sustainable against the assessee.

Ratio Decidendi: An amending notification that is clarificatory in nature applies retrospectively and must govern pending disputes relating to the exemption.

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