TaxTMI 
TaxTMI 
1996 (5) TMI 264
X X X X Extracts X X X X
X X X X Extracts X X X X
....gional Bench in the case of the very same appellant reported in 1996 (83) E.L.T. 610. The Tribunal in the context of the demand in para 6.5 has held as under : 6.5 We also looked into the provision of exemption Notification, which was predecessor to the Money Credit Scheme, Notification No. 115/86-C.E., dated 1-3-1986 was the one prevalent prior to introduction of the Rules relating to Money Credit Scheme. Explanation (3) of the said Notification is reproduced below : "The percentage of cotton seed oil or specified minor oils used in the manufacture of vegetable product shall be calculated with reference to the weight of such oils and the total weight of the mixture of oils immediately before such mixture is subject to the process of hydrogenation for conversion into the said vegetable product." (emphasis supplied) From the above, we find that all along the Government's intention was to give exemption only with reference to the weight of minor oils present in the total weight of mixture of oils immediately before such mixture is subject to the process of hydrogenation for conversion to V.P. It did not extend to the percentage calculated with reference to the quanti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in the manufacture of such final products and the credits so allowed may be utilised for payment of duty on the final products, subject to the provisions in this section and the conditions if any, stipulated in the said notification. He has pleaded that the wordings of the rule clearly sets out that the benefit has to be allowed in respect of notified raw materials which are used in the manufacture of the notified finished products and has pleaded that the legislature by using the term raw materials has clearly set out its intention as to the category of the goods which is to be allowed the benefit in terms of this rule. He has pleaded the term raw material should be the material which is taken into use and which is processed for use in the manufacture of the notified finished product. He has pleaded that the appellants had used the bought out minor oils and taken them into processing before these reached a stage when this could be mixed with other oil for hydrogenation processes. He has pleaded that during the process carried out there was some loss as a result of purification and the quantum which emerged after the processing was less than the quantity taken into processing. T....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ry in column (3) of the said Table as the rate at which credit may be granted for use of such inputs in the manufacture of the said final products, for the purposes of Section AAA of Chapter V of he said rules and stipulates that the grant of credit and utilisation thereof shall, in addition to the provisions of the said section, be subject to the following conditions, namely :- (i) the credit shall be taken only in respect of quantity of oil or fat, as the case may be, subjected to (a) hydrogenation for the manufacture of vanaspati and bakery shortening; or (b) blending or emulsification for the manufacture of margarine and such credit shall be taken only on the date on which the oil or fat, as the case may be, has been so hydrogenated, blended or emulsified; (ii) the credit taken during any calendar month shall be utilised for payment of duty on the said final products only after the commencement of the succeeding month; (iii) the quantity of credit utilised for payment of duty on any individual clearance of the said final products shall not exceed rupees one thousand per tonne of the said final products, cleared and the excess credit, i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(1) (2) (3) 01. Rice bran oil Rs. 5,000/- 02. Mahuwa oil Rs. 6,500/- 03. Water melon seed oil Rs. 6,500/- 04. Solvent extracted cotton seed oil Rs. 4,000/- 05. Solvent extracted mustard oil Rs. 3,250/- 06. Solvent extracted rapeseed oil Rs. 3,250/- 07. Solvent extracted sunflower oil Rs. 3,250/- 08. Solvent extracted safflower oil Rs. 3,250/- 09. Palm oil Rs. 3,250/- 10. Solvent extracted sesame oil Rs. 3,250/- 11. Sal-seed fat Rs. 3,250/- Explanation. - In this notification, "Vegetable product" means any vegetable oil or fat which, whether by itself or in admixture with any other substance, has by hydrogenation or by any other process, been hardened for human consumption. [Notification No. 45/89-C.E. (N.T.), dated 11-10-1989 as amended by Notification No. 13/90-C.E. (N.T.), dated 20-3-1990; No. 25/91-C.E. (N.T.), dated 25-7-1991 and No. 29/91-C.E. (N.T.), dated 11-9-1991.] It is observed that in the opening para of the notification a reference has been made to the description of the goods in respect of which money credit benefit is available for use in the manufacture ....