Credit of money scheme for use of minor oils in the manufacture of vanaspati - Whether til oil is eligible for the benefit under Notification No. 27/87-C.E., as amended - Clarification regarding - Central Excise - 23/89

Credit of money scheme for use of minor oils in the manufacture of vanaspati - Whether til oil is eligible for the benefit under Notification No. 27/87-C.E., as amended - Clarification regarding Circular No. 23/89 Dated 7-4-1989 [From F. No. 91/4/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Credit of money scheme for use of minor oils in the manufacture of vanaspati - Whether til oil is eligible for the benefit under Notification No. 27/87-C.E., as amended - Clarification regarding. A doubt has been expressed as to whether til oil which is added to hydrogenated oil as per the requirement of Vegetable Oil Products Control Order, 1947, to make vanaspati would be eligible for the purpose of computation of credit under Notification No. 27/87-C.E., dated 1-3-1987, as amended. 2. The matter has been examined. The scheme of credit of money under notification No. 27/87-CE referred to above consists of two parts, namely, (i) taking of the credit and (ii) utilisation of the credit so taken. Since til oil is added after hydrogenation, the question of taking credit on til oil contents does not arise in terms of condition (i) of Notification No. 27/87-C.E., dated 1-3-1987, as amended. 3. So far as utilisation of the credit taken is concerned as per condition (iii) of the said notification, the amount of credit utilised for payment of duty on any individual clearance of the final products shall not exceed rupees one thousand per tonne of the vegetable product cleared and the excess credit, if any, available in the credit account shall not be refunded to the manufacturer or adjusted against or utilised for payment of duty on any excisable goods under any other circumstances. 4. In regard to utilisation of the credit taken, whatever credit has been earned in terms of condition (i) of the said notification that can be utilised towards payment of duty subject to the ceiling prescribed vide condition (iii) of the said notification. However, at the time of the utilisation of the credit, til oil content should not be deducted from the total weight of vanaspati. 5. Lower field formations and the trade interests may be advised accordingly. 6. All pending assessments may be finalised on the above basis.