Retrospective excise exemption supports refund of excess duty where the later notification mirrors an earlier one.

Notification No. 213/86-C.E. was treated as retrospective from 1-3-1986 under the Central Duties of Excise (Retrospective Exemption) Act, 1986 because it was pari materia with Notification No. 212/86-C.E., which had already been held to operate retrospectively to preserve the pre-1-3-1986 duty level. On that basis, duty paid during 13-3-1986 to 18-3-1986 in excess of the applicable reduced rate was considered refundable, and the refund claim was legally sustainable.

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Issues: Whether the assessee was entitled to refund of duty paid during 13-3-1986 to 18-3-1986 on the basis that Notification No. 213/86-C.E. dated 25-3-1986 applied retrospectively from 1-3-1986 under the Central Duties of Excise (Retrospective Exemption) Act, 1986.

Analysis: The Tribunal applied the Larger Bench ruling which had held that Notification No. 212/86-C.E. dated 25-3-1986, issued to maintain the effective rate of duty at the level prevailing before 1-3-1986, operated retrospectively from 1-3-1986 under the Central Duties of Excise (Retrospective Exemption) Act, 1986. It further noted that Notification No. 213/86-C.E. was pari materia to Notification No. 212/86-C.E., and therefore the same retrospective application governed the present claim. Since duty had been paid at 10% ad valorem instead of the applicable 3% ad valorem rate, the refund claim was legally sustainable.

Conclusion: The assessee was entitled to refund of the excess duty paid, and the appeal succeeded.

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