Accrued incentive credit survives rescission and remains usable for excise duty on vanaspati, subject to original notification conditions.

Accrued benefit under an incentive notification does not lapse merely because the notification is rescinded. The accumulated money credit earned for use of minor oils in vanaspati manufacture therefore survived rescission and could be utilised toward excise duty on vanaspati when duty was reintroduced, but only subject to the conditions attached to the original notification. The distinction drawn between money credit and Modvat credit did not change the result, because the decisive question was whether the vested credit right continued after rescission.

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Issues: Whether the accumulated money credit earned under the incentive notification for use of minor oils could be utilised for payment of excise duty on vanaspati after the notification was rescinded, and whether such credit lapsed on rescission.

Analysis: The money credit scheme was introduced to encourage use of minor oils in vanaspati manufacture, and the assessee had accumulated credit under the scheme before its rescission. The governing principle applied was that a right acquired under a notification does not get extinguished merely because the notification is rescinded. The accumulated credit therefore continued to exist and could be used when duty on vanaspati was reintroduced, but only in accordance with the conditions attached to the original notification under which the credit was earned. The distinction sought to be drawn by Revenue between money credit and Modvat credit did not alter that conclusion, because the decisive question was whether the accrued benefit survived rescission.

Conclusion: The accumulated money credit did not lapse on rescission and was available for utilisation towards duty on vanaspati, subject to the conditions of the original notification.

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