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TMI Blog1996 (4) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... issued under Rule 57K of the Central Excise Rules. One of the conditions in this notification is that the quantity of credit utilised for payment of duty on any individual clearance of the final product shall not exceed Rs. one thousand PMT 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 in any other circumstances. Notification 27/87 was rescinded on 25-8-1989 by Notification 39/89. Subsequently, another Notification 45/89, dated 11-10-1989 was issued on the same lines for the same purpose, namely, to encourage use of minor oil in the manufacture of vegetable product by grant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner (Appeals) referred to the relevant provisions relating to money credit under Rule 57K and the related rules. He also referred to the decision of the Gujarat High Court in the case of Dipak Vegetable Oil Industries (supra) and held that utilisation of credit accumuated under Notification 27/87 was subject to the provisions of Central Excise Rules governing money credit of the condition of the notifications issued thereunder. Notifications 27/87 and 45/89 were such notifications. Reading of Rule 57K with Notifications 27/87 and 45/89, issued under that rule, clearly indicated that the amount of credit is to be restricted to Rs. one thousand PMT. In this context, the Commissioner (Appeals) referred to the Delhi High Court decision in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the rebate which can be availed of for a single clearance to Rs. one thousand PMT and not more. If the appellants were keen to utilise the accumulated credit under the rescinded notification, they could have distributed the utilisation in any manner provided always that the total amount utilised is limited to Rs. one thousand PMT. 5. We have carefully considered the submissions made by both the sides. The judgments of the High Courts of Gujarat, Madras and Andhra Pradesh [supra] lay down clearly that just because the Notification 27/87 had been rescinded, it will not be a bar to utilisation of that credit earned already while the notification was in force. The implication of the rescinding notification is that fresh credit cannot be e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne thousand PMT. The Court, further, noted that the excise payable on vanaspati was Rs. 1,900.00 PMT and that therefore, the manufacturer will have to pay a minimum of Rs. 900.00 PMT on vanaspati cleared from other sources. The Commissioner (Appeals) had also noted a decision of the Delhi High Court wherein the High Court had modified its earlier order and directed that the amount from accumulated credit to be utilised by the petitioner, should not exceed Rs. one thousand PMT. From the discussion of the ratio of the judgments above and the nature and objective of the scheme of granting rebate on excise duty to encourage use of minor oils in the manufacture of vanaspati and soap, it emerges that the notifications issued for the purpose have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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