Modvat - Mercury consumed in the manufacture caustic soda - Central Excise - 9/89-CX.8

Modvat - Mercury consumed in the manufacture caustic soda Circular No. 9/89-CX.8 Dated 21-3-1989 [From F. No. 263/14/89-CX.8] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Admissibility of Modvat credit on Mercury consumed in the manufacture of Caustic Soda - Clarification regarding. I am directed to refer to Point No. 33 of the Seminar on Modvat held at Bombay on 5th December, 1988, regarding admissibility of Modvat credit on the mercury consumed in the manufacture of Caustic Soda. The matter has been examined by the Board. It has been observed that though some quantity of mercury gets actually consumed in the manufacture of caustic soda and is essential for the manufacture of the same, yet the said mercury actually acts as electrodes (an essential part of electrolysis system) and therefore is more in the nature of machinery than an input. It has therefore been decided that the said mercury used in the manufacture of caustic soda cannot be treated as input and thus modvat credit on the same cannot be permitted. Past cases may be settled accordingly. The above instructions may be brought to the notice of the field formations. Receipt of this letter may please be acknowledged.