2026 (7) TMI 81

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....e Duty has been confirmed by including in the assessable value, the value of rails supplied free of cost by Indian Railways for manufacture of glued joints supplied by the appellant to the Railways. 2. The dispute lies in a narrow compass. The sole basis adopted by the Adjudicating Authority for confirmation of demand is that during the relevant period, namely from 17.03.2012 to 03.02.2014, no exemption was available for exclusion of the value of rails supplied free of cost by Indian Railways and, therefore, such value was required to be added to the assessable value of glued joints manufactured and supplied by the appellant. 3. Subsequent to the passing of the impugned order, the statutory provision underwent a significant change by ....

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....he Finance Act, 2015. It is submitted that the Government, after considering the peculiar nature of supplies made to Indian Railways, inserted Entry No. 205A in Notification No. 12/2012-C.E. through the Finance Act, 2015 and granted retrospective exemption in respect of the value of rails supplied free of cost by Indian Railways for manufacture of glued joints. It is further argued that the retrospective exemption specifically covers the period from 17.03.2012 to 03.02.2014, which is exactly the period involved in the present proceedings. 9. According to the appellant, once the legislature itself has retrospectively exempted the value of free-supplied rails from duty, the basis on which the Adjudicating Authority confirmed the demand dis....

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....d from 17.03.2012 to 03.02.2014. The period covered by the retrospective exemption is precisely the same period involved in the present proceedings. The legal effect of retrospective exemption is well settled. Once the legislature grants exemption with retrospective effect, the amended provision is deemed to have existed from the date specified therein. Consequently, all pending proceedings are required to be decided in accordance with amended law. 14. In the present case, the Adjudicating Authority proceeded on the basis that no exemption existed. That premise no longer survives after enactment of the Finance Act, 2015. The very basis for inclusion of the value of free-supplied rails in the assessable value, therefore, stands materially....