9911796707
TMI Blog1990 (10) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... tonne of vegetable product cleared from the factory. Any amount payable in excess of Rs. 1,000/- is debited to his PLA account and thus he earns a credit of Rs. 1,000/- per tonne and this credit earned by the petitioner on each tonne of vegetable product cleared, is credited to Account RG 23B, Part II. 2. Chapter AAA was inserted in the Central Excise Rules with effect from 1-3-1987 and special Rules were framed to implement the scheme and the notifications issued under Rule 57K. Rules 57K to 57P prescribe the procedure to be observed by the manufacturer to earn the credit and also for utilisation of the said credit and for disallowance of the credit and other related matters. Under the scheme provided in Rules 57K to 57P the rates of cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er-esterified, re-esterified or elaidinised, whether or not refined but not further prepared. Rs. 1,900/-Per tonne." 7. Applying the Notification the petitioner earned a credit of Rs. 1,000/-- on the full duty of Rs. 1,900/- payable on each tonne of vegetable product produced. Under the scheme of the notification, as per the table annexed to the notification, the rates and credit per tonne to which the manufacturer is entitled is mentioned against each type of fixed vegetable product notified in the table. Though the manufacturer earned the credit on each tonne of fixed vegetable product utilised as input for producing the vegetable product he was allowed a set off of only Rs. 1,000/- per tonne under the notification. Whatever is paid in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... direct the respondents to permit him to utilise the accumulated credit of Rs. 47,58,093.90 earned up to 25-8-1989, towards the excise duty payable on its final products during the period beyond 25-8-1989. 10. A statement of objection is filed on behalf of the respondents opposing this claim made by the petitioner. The case of the department is that by virtue of the rescinding of the Notification 27/87 with effect from 25-8-1989, the petitioner is not entitled to utilise the accumulated credit beyond that date. The argument is that the notification under which the petitioner earned the credit was no longer in existence and from the date it was rescinded he loses the right to claim set off or adjust it against other liabilities under the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... again restored and that is a verbatim replica of the earlier Notification 27/87. Therefore, the disallowance of utilisation of the accumulated credit would affect the clearance during the period 25-8-1989 and 11-10-1989. 13. For the reasons which weighed with their Lordships of the Gujarat and Punjab and Haryana High Courts with which I agree, the petitioner in this case also has to succeed. The scheme was introduced for the purpose of granting incentives for production of edible oils from non-conventional oils like rice bran oil, mahua oil, watermelon seeds etc., and a rebate was offered as an incentive on the use of such oils as inputs in the manufacture of vegetable products. The accumulated credit does not cease or vanish the moment t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST Act, held that the Govt. cannot take away the concessions earned by the small scale industrialists by way of refund of sales tax under the notifications of the Govt. This order of the learned Single Judge was confirmed by the Division Bench and the appeals filed by the State were dismissed by the judgment of the Supreme Court reported in Asst. Commissioner of Commercial Taxes (Asst.) Dharwar and Others v. Dhamendra Trading Co. [70 STC 59]. The denial of utilisation of the credit earned by the petitioner and other manufacturers of vegetable products under the Notification 27/87 is similar to the denial of the incentives to small scale industries which was the subject matter in Dhamendra Trading Company's case. The decision of the Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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