Notification No. 45 dated 11^th October 1989 (NT) {As amended by Notification No. 13/90(NT), 25/91(NT), 29/91(NT), 11/94(NT)}

In exercise of the powers conferred by rule 57K of the Central Excise Rules, 1944, the Central Government hereby specifies-

(i)     the input; namely, vegetable oils or fats 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. 1504.00 or margarine and bakery shortening falling under sub-heading No. 1508.90 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 purposes of Section AAA of Chapter V of the said rule 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 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 on or after the date on which the oil or fat, as the case may be has been so hydrogenated, blended or emulsified; and

(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 product cleared  and the excess credit, if any, available  in the credit account shall not be refunded to the manufacturer of adjusted against or utilised for payment of duty on any excisable goods under any other circumstances;

(iv)    where the description in column (2) 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 Commissioner 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 methods; 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 Commissioner 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 Commissioner 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 and Civil Supplies of the Government of India to the effect that the said oil has been of indigenous origin.