I.J. Rao, Member (T)

1. The appellants - a Public Sector Undertaking - imported and cleared an ore sorter under a Bill of Entry No. DI-564 dated 16.7.1983. On certain representations being made by the importers/appellants, the Government of India issued an Exemption Order No. 191 dated 12.10.1983 under Section 25(2) of the Customs Act granting exemption from customs duty, auxiliary duty and additional duty. This order was to be valid upto, and inclusive of, 31.3.1984.

2. The appellants, who paid the duty earlier, made an application for refund on the basis of the Exemption Order. The Assistant Collector of Customs rejected the same on the ground that the Exemption Order No. 191 was issued subsequent to the importation of the goods and payment of duty thereon. While doing so, the Assistant Collector observed that the exemption under the authority of Sub-section (2) of Section 25 of the Customs Act, 1962, is, in fact, a post-facto exemption applicable only to subsequent importation of goods. (The Assistant collector meant 'prospective' but appears to have wrongly used the word 'post-facto'). He further observed that (the exemption) has no retrospective effect and does not apply to