Accrued excise credit survives rescission where the concession was validly earned and later restored under an identical notification.

Credit validly earned under Notification No. 27/87-C.E. under Rule 57K remained an accrued right for duty payment, and rescission of the notification did not by itself extinguish that entitlement. The accumulated credit was not forfeited merely because the notification was withdrawn, particularly where an identical notification was later restored, indicating continuity of the concession. The principle of promissory estoppel was applied to prevent denial of the earned benefit. The accumulated credit could therefore be utilised after rescission, subject to verification of the amount.

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Issues: Whether credit earned under Notification No. 27/87-C.E. could be utilised after the notification was rescinded, and whether the accumulated credit stood forfeited on rescission.

Analysis: The credit scheme under Rule 57K of the Central Excise Rules permitted credit to be earned on notified inputs and utilised for payment of duty on final products subject to the notification and rules. The petitioner had already earned accumulated credit before rescission of Notification No. 27/87-C.E. The rescission did not extinguish the rights that had accrued under the earlier notification, and the subsequent restoration of an identical notification reinforced that the benefit was intended to continue. The Court adopted the view that the accumulated credit did not lapse merely because the notification was withdrawn, and applied the principle of promissory estoppel to prevent denial of the earned concession.

Conclusion: The accumulated credit could be utilised even after rescission of Notification No. 27/87-C.E., and the petitioner was entitled to the relief sought, subject to verification of the amount.

Ratio Decidendi: Credit validly earned under an incentive notification creates an accrued right to utilise it for duty payment, and that right is not defeated merely by rescission of the notification.

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