1991 (2) TMI 130

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....30-8-1989. 2. Vanaspati (hydrogenated vegetable oil) is normally manufactured from conventional oils. To encourage use of minor oils, the Central Government introduced in 1986-87 a scheme of rebate in excise duties for Vanaspati and soap linked to user of minor oils like rice bran oil, mahuva oil, water-melon seed oil etc. The Central Government inserted on 1-3-1987 Section AAA containing Rules 57K to 57P in Chapter V of the Central Excise Rules. On that date the Government also issued notification under Rule 57-K viz., Notification No. 27/1987 and Notification No. 40/1987 specifying the final products, minor vegetable oils and rates at which credit was to be given for use of such minor oils in manufacture of Vanaspati. Notification No. 40....

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....h is being adjusted from time to time against Vanaspati clearances. By Notification No. 39/89-C.E. (NT), dated 25-8-1989, though it was published in the Gazette only on 28-8-1989, but was made available to public on 30-8-1989, the Central Government had withdrawn the credit facility for the usage of rice bran oil and other incentives given for the usage of various types of minor oils. The petitioner like others was under the impression that the notification was only prospective in operation. The petitioner is continuing to avail credit which was in his favour but the petitioner was informed by the Superintendent of Central Excise, Azamabad Range-II not to avail of the same on or from 25-8-1989 for payment of excise duty on the manufacture o....

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.... mandamus to permit the petitioners therein to utilise the credit of money earned by them as a result of purchase of duty paid notified goods before the notifications in question came to be rescinded for payment of the excise duty on manufacture of Vanaspati or soap as the case may be. The Gujarat High Court also directed that these benefits will be available to the petitioners, in addition to the benefits which have again been made available to them under Notification Nos. 45/89 and 46/89 dated 11-10-1989. 8. This decision of the Gujarat High Court was subject matter of Special Leave Petition No. 10118-27 of 1990 (Union of India v. Deepak Vegetable Oil Industries Ltd.) before the Supreme Court. After hearing both parties the Supreme Court....