9911796707
TMI Blog1996 (10) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... also during the course of personal hearing. The main point that has been taken up by the appellants is that the processing loss was admissible in terms of Notification No. 40/87 which ground has been contested by the adjudicating authority. So far as the question of processing loss is concerned, on a very strict reading of the Notification there is nothing in it to indicate that processing loss is allowable. I, therefore, uphold the Asstt. Collector's order and reject the appeal." 2. The facts of the case are that the appellants are engaged in the manufacture of various goods including soap and are availing credit of money on oils both rice bran oil and minor oil specified under Notification No. 40/87-C.E., dated 1-3-1987. During the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wrongly and that the same was liable to be recovered u/r 57P of the C. Ex. Rules, 1944. A show cause notice was issued to the appellants accordingly. On careful consideration of the submissions made by the appellants, the A.C., in his order-in-original, disallowed credit of money amounting to Rs. l ,04,370/- and ordered that reverse entry should be made for this amount in the relevant register and if there was not sufficient balance, this amount should be deposited under TR-6 challans. 3. Shri J.P. Kaushik, the ld. Advocate appearing for the appellants submitted that Notification No. 40/87-C.E. clearly provided for money credit on the quantity of oils issued for hydrolysis. He submitted that the interpretation placed by the deptt. to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alling under sub-heading No. 3401.10 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 said input in the manufacture of the said final product, For the purposes 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 the process of saponification or the process of hydrolyzation where such hydrolyzation precedes saponification, on or af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 800 14. Pisa oil Rs. 2800 15. Naho oil Rs. 2800 Condition No. (i) of this Notification according to the department, stipulates admissibility of money credit only on the quantity of oil which is obtained after hydrolyzation whereas the appellants have contended that money credit will be admissible on the quantity of oil before it is hydrolyzed. We find that the appellants have relied upon the decision of the Tribunal in the case of Wipro Ltd. cited supra. In that case, Notification No. 45/89-C.E. [(N.T.)], dated 11-10-1989 was involved. Condition (i) of Notification No. 45/89-C.E. [(N.T.)] read as "(i) The credit shall be taken only in respect of the quantity of oil or fat as the case may be subjected to hydrogenation on (or after the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification No. 45/89 issued under Rule 57K cannot be held to be otherwise, as pleaded by Shri Ravindran, merely because of the provision of Rule 57M or because of the stipulation in the Vegetable Oil Products Control Order. Rule 57M could be pressed into service. If there is a loss in hydrogenation or thereafter. It cannot come into play. Where the Notification does not allow money credit for the quantity of raw oil taken for processing, before hydrogenation. Notification No. 45/89 read in the context of the proceeding exemption Notification No. 115/86-C.E. leaves no doubt that the Government's intention had been all along to give exemption or credit only in respect of the quantity of oil subject to hydrogenation. We therefore, hold that ei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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