Intended use under the notification allowed minor oil credit for duty payment despite non-use in manufacture.

The controlling language of the notification was interpreted to require that minor oil be "intended to be used" in the scheme, not actually used during the relevant period. On that reading, money credit taken on minor oil could be utilised for payment of duty on the vegetable product even though the final product did not contain minor oil at that time, because the scheme did not make actual incorporation a separate condition for credit utilisation. The Revenue's challenge therefore failed.

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Issues: Whether money credit taken on minor oil could be utilised for payment of duty on vegetable product when the minor oil was not actually used in the manufacture of the final product during the relevant period.

Analysis: The Tribunal followed its earlier decision on the same scheme and held that the controlling language of the notification was "intended to be used", not actual use. It also noted that there was no contrary decision brought to its notice and that the scheme did not require the final product to contain minor oil as a specific condition for credit utilisation.

Conclusion: The credit was held to be utilisable for clearance of the vegetable product despite non-use of minor oil in the material period, and the Revenue's appeal failed.

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