Strict compliance with credit notification conditions barred set-off where credit was not taken on the hydrogenation date.

A concessional set-off under Rule 57K notification was available only if the prescribed conditions were strictly met, including that credit be taken only on the date the oil was hydrogenated. Because the relevant credit was not taken on that date, an essential mandatory condition was left unfulfilled. Non-compliance with the condition defeated entitlement to the concession, and the refund claim could not succeed. The ruling underscores that exemption or credit notifications must be applied in accordance with their express terms, and failure to satisfy a foundational condition prevents the benefit from being claimed.

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Issues: Whether the assessee was entitled to claim credit under the notification issued under Rule 57K of the Central Excise Rules, 1944 despite non-fulfilment of the condition that the credit be taken only on the date on which the oil was hydrogenated.

Analysis: The notification granted a concessional set-off only subject to the prescribed conditions, and the first condition expressly required that credit be taken only in respect of oil hydrogenated on or after 1 March 1987 and only on the date of such hydrogenation. The finding that the relevant credit was not taken on that date meant that an essential condition for availing the concession was not satisfied. The absence of compliance with the mandatory condition was sufficient to defeat the refund claim.

Conclusion: The assessee was not entitled to the credit or refund claimed under the notification.

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