Section 326(2) in The Naval Ceremonial, Conditions Of Service And Miscellaneous Regulations, 1964
(2)If a sailor dealt with under clause (b) or clause (c) of sub-regulation (1) rejoins the Service within the year, the assessed character awarded on 31st December shall cover the whole year, the intermediate character awarded on desertion or discharge being ruled through. This does not apply to recovered deserters awaiting trial at the end of the year; their characters shall not be assessed on 31st December.