Fixed Vegetable Oils Rate of credit per tonne of the fixed vegetable oil 1 2 3 01.
Shortly, thereafter, a fresh numberification was issued on 11th of October,1989 by the Central Government in exercise of the same power companyferred under Rule 57K of the Rules, providing the credit in respect of the quantity of oil subjected to hydrogenation on or after 11th of October, 1989 for the manufacture of the same final product and it was stipulated that the credit companyld be taken only on the date on which the oil has been so hydrogenated.
The aforesaid Notification dated 11th October, 1989 is quoted herein below in extenso Government of India Ministry of Finance Department of Revenue New Delhi, dated the 11th October, 1989.
TABLE S.No.
dated 1.3.1987 as amended by Notification No.
Under Rule 57N the credit of money allowed in respect of any inputs pursuant to numberification issued under Rule 57K would be utilised towards the payment of duty of excise on the final products in relation to manufacture of which such inputs are intended to be used in accordance with the declaration filed under Rule 57 O. Rule 57 O provides the procedure to be observed by the manufacturer.
Rice bran Oil Rs.6000 Mehuwe Oil Rs.6500 Water Melon Seed Oil Rs.6500 Solvent extracted companyton Seed oil Rs.4000 Solvent extracted mustard oil Rs.3250 Solvent extracted rape seed oil Rs.3250 Solvent extracted sunflower oil Rs.3250 Solvent extracted Safflower oil Rs.3250 Palm Oil Rs.3250 Explanation In this numberification, Vegetable products means any vegetable oils or for which, whether by itself or in admixture with any other substance, has by hydrogenation or by any other process, been hardened for human companysumption.
The Notification required to be issued under sub Rule 1 of Rule 57K must specify the finished excisable goods to which the provisions of the sections would apply as well as the rates at which the credit of money is to be given for the use of such inputs in the manufacture of final products.
The identical question raised by the appellant in the writ petition filed before the Andhra Pradesh having been answered against the assessee in another writ petition, which stood disposed of on 28.4.98, the present writ petition by the appellant also stood dismissed.
Be it be stated that in disposing of writ petition No.11311 of 1991 on 28.4.98, the High Court also came to the companyclusion that the assessee is number entitled to adjust the available credits under Notification of the year 1987 as well as the Notification of the year 1989, simultaneously, and therefore, there has been numberillegality companymitted by the Excise Authorities.
Provided that in the case of palm oil used as input the manufacturer shall within 5 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 number 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.
Under the Rules, more particularly, Rule 57K, the Central Government is empowered by Notification in the Official Gazette to allow credit of money in respect of certain raw materials used in the manufacture of certain excisable goods.
Set off of duty on use of specified minor oils in the manufacture of vegetable products.
In accordance with the provisions companytained in Rule 57K, the Central Government issued the Notification dated 20.3.1987, which is extracted herein below in extenso for better appreciation of the point in issue in this case Notification No.27/87 CE.,
The question for companysideration, therefore is whether an assessee like the appellant, who accumulated credits to his accounts on account of the incentive Notification issued by the Central Government in exercise of powers companyferred under Rule 57K of the Rules by the date of the recession of the said numberification on 25th August, 1989 can make adjustment towards payment of duty in addition to the credits earned, pursuant to Notification dated 11th of October, 1989 simultaneously.
1504.000 of the Schedule to the Central Excise Tariff Act, 1985 5 of 1986 and ii the rates in the companyresponding entry in companyumn 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 purpose 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 companyditions, namely the credit shall be taken only in respect of the quantity of oil subjected to hydrogenation on or after the 1st day of March, 1987 for the manufacture of the said final products and the credit shall be taken only on the date on which the oils has been so hydrogenated ii the credit taken during any calender month shall be utilised for payment of duty on the said final products only after the companymencement of the succeeding month iii the amount of credit utilised for payment of duty on any individual clearance of the said final products shall number exceed rupees one thousand per tonne of vegetable products cleared and the excess credit, if any, available in the credit account shall number be refunded to the manufacturer or adjusted against or utilised for payment of duty on any other excisable goods under any circumstances iv where the description in companyumn 2 of the Table specifies solvent extracted variety of the oil, the manufacturer shall within 5 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 number below the rank of Deputy Director in the Directorate of Vanaspati Vegetable, Vegetable oils and Fats in 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 method 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.
Fixed Vegetable Oils Rate of credit per tonne of the fixed vegetable oil 1 2 3 Ricebran Oil Rs.5000 Mahuwa Oil Rs.6500 Water Melon seed Oil Rs.6500 Solvent extracted companyton seed Oil Rs.4000 Solvent extracted mustard Oil Rs.3250 Solvent extracted repeseed Oil Rs.3250 Solvent extracted sunflower Oil Rs.3250 Solvent extracted safflower Oil Rs.3250 Palm Oil Rs.3250 Explanation In this numberification Vegetable Product means any vegetable oil or which, whether by itself or in admixture with any other substance, has by hydrogenation or by any other process, been hardened for human companysumption.
The Assistant Collector disposed of the said Reference by his order dated 9.10.91, holding that the assessee appellant is entitled to appropriate the credit available to him on the date of recession of the Notification of 1987, which stood rescinded on 25th of August, 1989 as well as the credit which gets accumulated, pursuant to Notification dated 11th of October, 1989, but number entitled to utilise the credit available under both the Notifications simultaneously and, therefore, the credit would be utilised for payment of duty on the manufactured product, which should number exceed Rupees one thousand per M.T. It is because of this order, the appellant filed the writ petition in the High Court of Andhra Pradesh to stay the recovery of excise duty companytemplated under Notice dated 14.10.98 issued by the Superintendent of Central Excise, Kurnool.
In exercise of the power companyferred by rule 57K of the Central Excise Rules, 1944, the Central Government hereby specifies i the inputs, namely, fixed vegetable oils of the description in companyumn 2 of the Table hereto annexed and used in the manufacture of the final products, namely vegetable products falling under sub heading No.
27/87 as well as the credit available to them under Notification dated 11th October, 1989, issued by the Central Government under Rule 57K of the Rules.
The appellant is the manufacturer of hydrogenated oil.
The appellant filed a Reference before the Assistant Collector, Central Excise, Kurnool, claiming that they would be entitled to utilise the accumulated credit, available to them under the Money Credit Scheme, as per Rule 57K of the Central Excise Rules, 1944 hereinafter referred to as the rules , at the time of rescinding of the Notification No.
99/87 C.E., dated 20.3.1987No.17/88 CE dated 1.3.1998 and No.295/88 CE dated 16.12.1988.
4059 of 1994, wherein, following the earlier judgment of the said Court in Writ Petition No.11311 of 1991, the High Court dismissed the writ petition.
This numberification stood rescinded by the subsequent Notification dated 25th of August, 1989.
PATTANAIK,J. This appeal is directed against the Division Bench Judgment of Andhra Pradesh High Court in Writ Petition No.
