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TMI Blog1993 (10) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... oaps and detergent falling under Chapter 34 and were availing credit under Rule 57K on rice bran oil at the rate of Rs. 640 per M.T. in terms of Notification 192/87 dated 12-8-1987 and had a credit of Rs. 74,289.80 on rice bran oil in their RG 23-A Part-2 as on 25-8-1989. Notification 192/89 allowed a fixed credit in respect of the use of rice bran oil and also imposed a restriction that such credit earned should be utilised only in the next month. This notification was rescinded by Notification 39/89 dated 25-8-1989 and the Department rejected the appellant s contention that credit earned earlier in terms of Notification 192/87 cannot be utilised after the issue of Notification 39/89 dated 25-8-1989 and assailed the correctness of this vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned order has observed as under : Notification 192/87 was issued under Rule 57K. This Notification fixes the rate at which the credit of duty is to be given for use of such inputs in the manufacture of final product. Notification 192/87 was rescinded by Notification 39/89 dated 25-8-1989. This was also issued under Rule 57K. Once Notification was rescinded it also rescinded the scheme under which it was given. Subsequent Notification issued is nothing provided regarding unutilised credit. Credit account will start afresh. The issue of a rescinding notification would not ipso facto abrogate or nullify the credit already earned nor its utilisation. The Division Bench of the Gujarat High Court dealing with similar issues and also the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng a disadvantage because of the low process yield of such minor oils, but hoping to get credit of money by way of rebate and further right to utilise that credit for payment of excise duty on the manufacture of Vanaspati and soap. We are, therefore, of the opinion that even after the aforesaid notifications came to be rescinded with effect from 25-8-1989 the credit of money which was earned by the manufacturers of Vanaspati and soap could be utilised by them in terms of the rules and the notifications for payment of excise duty on vanaspati and soap manufactured by them after 25-8-1989. The following observations of the Supreme Court in the case of Shri Vijayalakshmi Rice Mills v. State of M.P., reported in AIR 1976 SC 1471 are also app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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