Accrued incentive credit cannot be denied by a later withdrawal notification where the credit was already earned under the earlier scheme.

Credit validly accrued under the earlier minor oils incentive scheme for manufacture of Vanaspati could not be denied by a later withdrawal notification. The High Court treated the withdrawal as prospective, holding that accumulated credit already earned before the new notification remained utilisable in accordance with the original scheme. The later reintroduction of the incentive supported the view that pre-existing credit was not extinguished by withdrawal. Consistent High Court authority on the same question was followed, and the petitioners were protected in their entitlement to use the accumulated credit.

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Issues: Whether the withdrawal notification could be applied so as to deny utilisation of credit already accumulated under the earlier scheme for minor oils used in the manufacture of Vanaspati.

Analysis: The scheme under Rule 57N and the relevant notifications permitted credit to be earned on use of notified minor oils and to be utilised in the manner provided therein. The credit had already accrued to the petitioners before the withdrawal notification came into force. The later withdrawal of the incentive was treated as prospective and not as destroying credit already earned, especially when the scheme was again introduced later through fresh notifications. The Court followed the consistent view taken by other High Courts on the same question.

Conclusion: The petitioners were entitled to utilise the accumulated credit earned before the withdrawal notification, and the respondents could not prevent such utilisation on the basis of the later notification.

Final Conclusion: Relief was granted by protecting the accumulated credit already earned under the earlier notification scheme and directing its utilisation in accordance with that scheme.

Ratio Decidendi: Credit validly earned under an incentive scheme cannot be denied by a later withdrawal notification so far as pre-existing accumulated credit is concerned, unless the later notification clearly operates retrospectively.

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