Accrued notification credit survives rescission and may be used across units of the same manufacturer.

A right to money credit lawfully accrued under a notification is not extinguished merely because the notification is later rescinded. The accumulated credit therefore did not lapse on rescission and remained available for utilisation. The reasoning also accepted that credit earned by one unit of a manufacturer could be used for the benefit of another unit of the same manufacturer, subject to the conditions of the original scheme. The Revenue's challenge failed.

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Issues: Whether the money credit accumulated under a notification lapsed on rescission of that notification and could still be utilised by the assessee, including at another unit of the same manufacturer.

Analysis: The credit had been validly earned under the relevant notification and the dispute concerned its continued availability after rescission. The settled principle applied was that a right lawfully accrued under a notification is not extinguished merely because the notification is later rescinded. On that basis, the accumulated credit did not lapse on rescission. The reasoning also accepted that credit accrued to one unit could be utilised for the benefit of another unit of the same manufacturer, subject to the conditions attached to the original credit scheme.

Conclusion: The accumulated money credit remained available for utilisation and did not lapse on rescission of the notification; the Revenue's challenge failed.

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