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2020 ] NOTIFICATION — WHEN PROSPECTIVE/ RETROSPECTIVE A197

without inflicting a corresponding detriment on some other person or on the
public generally, and where to confer such benefit appears to have been the
legislators object, then the presumption would be that such a legislation, giv-
ing it a purposive construction, would warrant it to be given a retrospective
effect.”
Moreover, recently, Hon’ble Supreme Court has further cleared this cloud of con-
fusion and held in most clear and explicit words that in case where two interpre-
tations are possible regarding retrospective operation of a beneficial notifica-
tion/circular, then, in such a case it must be applied retrospectively.
• In Commissioner of Central Excise, Bangalore v. M/s. Mysore Electricals
Industries Ltd. [2006 (204) E.L.T. 517 (S.C.)], the Hon’ble Supreme
Court while dismissing the appeal filed by revenue authority made
following apropos observation :
“13… In other words, a beneficial circular has to be applied retro-
spectively while an oppressive circular has to be applied prospec-
tively. Thus, when the circular is against the respondents they have
a right to claim the enforcement of the same prospectively.”
• In Suchitra Components Ltd. v. Commissioner of Central Excise [2008
(208) E.L.T. 321 (S.C.)], the Hon’ble Supreme Court while allowing
appeal filed by the Appellant (Suchitra Components Ltd.) made fol-
lowing apropos observation :
“2. …. Commissioner of Central Excise, Bangalore v. M/s. Mysore Elec-
tricals Industries Ltd., reported in 2006 (204) E.L.T. 517 (S.C.). In the
said Judgment, this Court held that a beneficial circular has to be
applied retrospectively while oppressive circular has to be applied
prospectively. Thus, when the circular is against, the assessee, they
have right to claim enforcement of the same prospectively.”
Conclusion
In the light of the above discussion, following points can safely be
drawn :
• Tax notifications are always to be interpreted strictly for the reason
that no tax can be imposed by implication.
• Exemption Notifications are also to be interpreted strictly; unless
otherwise is explicitly provided, such notifications will operate pro-
spectively.
• Retrospective or Prospective operation of Non-Exemption Notifica-
tion will depend on whether the effect of interpretation is beneficial
or oppressive effect on the subject. In case where two interpreta-
tions can be made, one supporting prospective operation and other
supporting retrospective operation, then, in such a case beneficial
notification will be applied retrospectively and oppressive notifica-
tion will operate prospectively.
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EXCISE LAW TIMES  15th June 2020  43