TaxTMI 
TaxTMI 
2000 (5) TMI 1079
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....ble to them under the Money Credit Scheme, as per Rule 57K of the Central Excise Rules, 1944 (hereinafter referred to as 'the rules'), at the time of rescinding of the Notification No. 27/87 as well as the credit available to them under Notification dated 11th October, 1989, issued by the Central Government under Rule 57K of the Rules. The Assistant Collector disposed of the said Reference by his order dated 9-10-1991, holding that the assessee-appellant is entitled to appropriate the credit available to him on the date of recession of the Notification of 1987, which stood rescinded on 25th of August, 1989 as well as the credit which gets accumulated, pursuant to Notification dated 11th of October, 1989, but not entitled to utilise the credit available under both the Notifications simultaneously and, therefore, the credit would be utilised for payment of duty on the manufactured product, which should not exceed Rupees one thousand per M.T. It is because of this order, the appellant filed the writ petition in the High Court of Andhra Pradesh to stay the recovery of excise duty contemplated under Notice dated 14-10-1998 issued by the Superintendent of Central Excise, Kurnool. The ide....
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.... dated 1-3-1988 and No. 295/88-C.E., dated 16-12-1988. Set-off of duty on use of specified minor oils in the manufacture of vegetable products. In exercise of the power conferred by Rule 57K of the Central Excise Rules, 1944, the Central Government hereby specifies :- (i) the inputs, namely, fixed vegetable oils of the description in column (2) of the Table hereto annexed and used in the manufacture of the final products, namely, vegetable products falling under sub-heading No. 1504.000 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986); and (ii) the rates in the corresponding entry 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 purpose of Section AAA of Chapter V of the 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 the quantity of oil subjected to hydrogenation on or after the 1st day of March, 1987 for the manufacture of the said final products and the....
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....vent extracted mustard oil Rs. 3250 06. Solvent extracted rape seed oil Rs. 3250 07. Solvent extracted sunflower oil Rs. 3250 08. Solvent extracted Safflower oil Rs. 3250 09. Palm Oil Rs. 3250 Explanation. - In this notification, "Vegetable products" means any vegetable oils or for which, whether by itself or in admixture with any other substance, has by hydrogenation or by any other process, been hardened for human consumption." This notification stood rescinded by the subsequent Notification date....
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....able goods under any other circumstances; (iv) where the description in column(s) of the Table specifies solvent extracted variety of the oil, the manufacturer shall within five months from the date of taking credit or such extended period as the Assistant Collector of Central Excise may allow in this behalf, produce a certificate from an officer not below the rank of Deputy Director in the Directorate of Vanaspati, Vegetable oils and Fats in the Ministry of Food and Civil Supplies of the Government of India to the effect that the said oil has been manufactured by the solvent extraction method; and (v) the credit shall be taken only in respect of indigenous inputs and the manufacturer shall produce such documents as may be required by the Assistant Collector of Central Excise in this regard; Provided that in the case of Palm Oil used as input the manufacturer shall within five months from the date of taking credit, or within such extended period as the Assistant Collector of Central Excise will allow in this behalf, produce a certificate from an officer not below the rank of Deputy Director in the Directorate of Vanaspati, Vegetable Oils and Fats in the Ministry of Food an....
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.... Palm Oil  Rs. 3250 Explanation. - In this notification "Vegetable Product" means any vegetable oil or which, whether by itself or in admixture with any other substance, has by hydrogenation or by any other process, been hardened for human consumption." 4.  Mr. Dushyant A. Dave, the learned Senior Counsel, appearing for the appellant contended before us that an assessee, who has earned the credit pursuant to notification, is entitled to get the same adjusted towards the payment of duty of excise on the final products notwithstanding the recession of the notification under which the credits stood accumulated in favour of an assessee. According to the learned Counsel, this being the position, when the same assessee earns further credits pursuant to a fresh notification, issued by the Government under Rule 57K, he will be entitled to utilise, both, the credits accumulated in favour of the assesee towards payment of duty of excise on the final products and as such the excise authorities committed error in allowing adjustment only to the extent of Rs. 1000/- per M.T. and refusing the adjustment of both the credits accumulat....
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....tion itself and in that view of the matter, an assessee is not entitled to utilise the accumulated credit under the old notification as well as the credits earned under the new notification of the year 1989 simultaneously and accordingly, the authorities of the department have taken the correct view. In support of this contention, reliance has been placed on the decision of the Karnataka High Court in the case of Union of India v. Modern Mills Ltd., 1994 (72) E.L.T. 246 (Kar.). 6.  In view of the rival submissions at the Bar, the only question that falls for consideration is whether the decisions of the Gujarat and Andhra Pradesh High Courts, on which reliance has been placed by Mr. Dave are susceptible of a construction that the Courts came to the conclusion that the accumulated credits under two different notifications one of the year 1987 and another of the year 1989 could be availed of by the assessee for the purpose of payment of duty on the manufactured goods simultaneously or the condition No. 3 of the notification issued in the year 1987, providing that the amount of credit utilised shall not exceed Rs. 1000/- per M.T. of available products, would operate. Answer to....
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....ntitled to utilise the same for payment of duty on the final products, but even under that notification, the similar provision as in the earlier one, namely clause (iii) is there, indicating, that the quantity of credit utilised for payment of duty on any individual clearance of the final products shall not exceed rupees one thousand per tonne of vegetable products cleared. This being the position we really fail to understand as to how a manufacturer can contend that he would be entitled to the advantages of both the notifications simultaneously in respect of one transaction for payment of duty, while clearing the transaction in question. Before the Gujarat High Court in Dipak Vegetable Oil Industries case, after the notification of the year 1987 was withdrawn by the Central Government under Notification No. 39/89 on 25-8-1989, the Excise Authorities being of the view that the manufacturer cannot avail of the accumulated credit for payment of excise duty, intimated the manufacturer that they should file fresh classification list. It is this intimation from the excise authorities which had been assailed before the High Court and the High Court on an analysis of the provisions of the....