Rescinded rebate credit remains usable, but only within the prescribed ceiling for each vanaspati clearance.

Credit earned under a rescinded rebate notification could continue to be used, but only within the express ceiling and conditions of the scheme. The rescission of Notification 27/87 did not extinguish credit already accrued while it was in force; it merely stopped fresh accrual after rescission. However, the rebate framework under Rule 57K and the related notifications kept the utilisation cap binding for each individual clearance of vanaspati, and excess credit could not be refunded, adjusted, or used to exceed that limit. Accordingly, accumulated credit under one notification could not be combined with credit under another notification to cross the prescribed ceiling.

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Issues: Whether credit earned under Notification 27/87 after its rescission could be used along with credit earned under Notification 45/89 so as to exceed the ceiling of Rs. 1,000 PMT on an individual clearance of vanaspati.

Analysis: The rebate scheme under Rule 57K and the notifications issued thereunder was intended to incentivise the use of minor oils, but it expressly restricted utilisation of credit to Rs. 1,000 PMT for any individual clearance. The rescission of Notification 27/87 did not destroy credit already earned while it was in force, but only prevented fresh accrual after rescission. The condition in the notifications also barred excess credit from being refunded, adjusted, or otherwise utilised beyond the prescribed limit. The earlier High Court decisions, read together, supported continuation of already earned credit, but not simultaneous utilisation of accumulated and current credit in excess of the notified ceiling.

Conclusion: The assessees were not entitled to utilise credit under both notifications simultaneously so as to exceed Rs. 1,000 PMT per individual clearance; the limitation in the notifications remained binding and the contention was rejected.

Final Conclusion: The statutory rebate credit could be carried forward after rescission, but its utilisation for each clearance remained capped at the notified ceiling, and the appeals failed.

Ratio Decidendi: Credit earned under a rescinded rebate notification may continue to be utilised only within the express ceiling and conditions of the scheme; rescission preserves accrued credit but does not permit utilisation beyond the prescribed limit.

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