9911796707
TMI Blog1990 (11) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of inputs such as ammonia, sodium sulphate etc. used in the final product soda ash. They are also removing part of the soda ash, for brine water purification captively under Exemption Notification No.154/68 dated 3-8-1968. As per this Notification, soda ash removed for purification of brine water within the factory to be used in the production of excisable or non-excisable goods upto 3% of sodium chloride contents of the common salt in the process of purification of brine is exempted from payment of duty. In this case, they had availed of modvat benefit, even in respect of such soda ash removed captively for the purification of brine water cleared at Nil rate of duty as per the aforesaid notification. This was objected to by issu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 57C are to be applied. Accordingly Modvat credit is to be denied on merits. However, on the question of time bar, he fairly conceded that as per the decision of this Tribunal, demand under Rule 57(1) is subject to the limitation of time as prescribed under Sec. 11A. 3. Shri Sheth, the Ld. advocate on behalf of the respondents, contended that purification of brine water is an essential process in the manufacture of soda ash. For purification of brine, soda ash is one of the main ingredients. If they had paid duty on soda ash, they would have been entitled to modvat benefit in respect of the inputs and also duty paid on soda ash would be eligible for modvat benefit. Hence, there is no question of revenue loss. He, therefore, sought to def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsiderable force in the argument of the learned SDR that soda ash removed for brine purification does not occur in the manufacture of final product viz. soda ash. Hence, applying provisions of Rule 57D to the present facts and circumstances is to be ruled out. The Collector has erred in applying Rule 57D. The Rule applicable, is only Rule 57C and hence on merits, such soda ash removed for brine purification is not eligible for modvat benefit, because it is exempted from whole of the duty payment. We would not like to go into the hypothetical question of absence of revenue loss argued by the learned advocate, since the admitted position is that soda ash is removed without payment of duty. In this view of the matter, we allow the appeal of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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