Set-off of duty on use of Specified Minor Oils in the manufacture of Vegetable Products [Chapter 15] - 45/89 - Central Excise - Non Tariff

Set-off of duty on use of Specified Minor Oils in the manufacture of Vegetable Products [Chapter 15]

Notification No. 45/89-C.E. (N.T.)

Dated 11-10-1989

In exercise of the powers conferred by Rule 57K of the Central Excise Rules, 1944, the Central Government hereby specifies —

(i) the input; namely, fixed vegetable oils of the description in column (2) of the Table hereto annexed and used in the manufacture of the final products, namely, vegetable products falling under sub-heading No. 1504.00 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986); and

(ii) the rates in the corresponding entry in column (3) of the said Table as the rate at which credit may be granted for use of such inputs in the manufacture of the said final products,

for the purposes of Section AAA of Chapter V of the said rules and stipulates that the grant of credit and utilisation thereof shall, in addition to the provisions of the said Section, be subject to the following conditions, namely :-

(i) the credit shall be taken only in respect of the quantity of oil subjected to hydrogenation on or after the eleventh day of October 1989 for the manufacture of the said final products and the credit shall be taken only on the date on which the oil has been so hydrogenated;

(ii) the credit taken during any calendar month shall be utilised for payment of duty on the said final products only after the commencement of the succeeding month;

(iii) the quantity of credit utilised for payment of duty on any individual clearance of the said final products shall not exceed rupees one thousand per tonne of vegetable products 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;

(iv) where the description in column (2) of the Table specifies solvent extracted variety of the oil, the manufacturer shall within five months from the date of taking credit, or such extended period as the Assistant Collector of Central Excise may allow in this behalf, produce a certificate from an officer not below the rank of Deputy Director in the Directorate of Vanaspati, Vegetable Oils and Fats in the Ministry of Food and Civil Supplies of the Government of India to the effect that the said oil has been manufactured by the solvent extraction methods; and

(v) the credit shall be taken only in respect of indigenous inputs and the manufacturer shall produce such documents as may be required by the Assistant Collector of Central Excise in this regard :

Provided that in the case of palm oil used as input the manufacturer shall within five months from the date of taking credit, or within such extended period as the Assistant Collector of Central Excise will allow in this behalf, produce a certificate from an officer not below the rank of Deputy Director in the Directorate of Vanaspati, Vegetable Oils and Fats in the Ministry of Food and Civil Supplies of the Government of India to the effect that the said oil has been of indigenous origin.

TABLE

Sl. No.	Fixed vegetable oils	Rate of credit per tonne of the fixed vegetable oil
(1)	(2)
01.	Rice bran oil	Rs. 5000
02.	Mahuwa oil	Rs. 6500
03.	Water melon seed oil	Rs. 6500
04.	Solvent extracted cotton seed oil	Rs. 4000
05.	Solvent extracted mustard oil	Rs. 3250
06.	Solvent extracted rapeseed oil	Rs. 3250
07.	Solvent extracted sunflower oil	Rs. 3250
08.	Solvent extracted saflower oil	Rs. 3250
09.	Palm oil	Rs. 3250

Explanation. - In this notification, "Vegetable product" means any vegetable oil or fat which, whether by itself or in admixture with any other substance, has by hedrogenation or by any other process, been hardened for human consumption.