Money credit on hydrolyzation oil is computed by quantity issued for processing, not the diminished post-process quantity.

Under Notification No. 40/87-C.E., money credit for oil subjected to hydrolyzation was held to be linked to the quantity of oil issued for that process, not the reduced quantity remaining after processing. The notification was read as allowing credit only in respect of oil actually sent for hydrolyzation on the relevant date, and the earlier precedent on the money credit scheme was applied to the same effect. The disallowance of credit based on post-process loss was therefore not sustainable.

---

---

Issues: Whether, under Notification No. 40/87-C.E., money credit was admissible on the quantity of oil issued for hydrolyzation or only on the quantity remaining after hydrolyzation.

Analysis: The notification provided that credit was to be taken only in respect of the quantity of oil subjected to hydrolyzation and on the date on which the inputs were so hydrolyzed. The language was treated as substantially similar to the wording considered earlier in the precedent concerning the money credit scheme. Applying that reasoning, the relevant quantity for credit was the oil actually issued for hydrolyzation and not the post-process quantity after loss in processing.

Conclusion: The credit was admissible on the weight of oil issued for hydrolyzation, and the disallowance of credit on that basis was not sustainable.

Ratio Decidendi: Where a money credit notification allows credit in respect of oil subjected to hydrolyzation, the admissible credit is determined by the quantity of oil issued for that process, not by the diminished quantity remaining after processing.

---