Captive use exemption for inputs in wood pulp manufacture upheld under Notification No. 10/96-C.E. on admitted facts.

Caustic soda and chlorine captively consumed in the manufacture of wood pulp fell within Notification No. 10/96-C.E., because the pulp produced matched the description covered by item No. 10 of the notification. On the admitted facts, the captive use satisfied the exemption conditions, and the denial of duty-free captive clearance was unsustainable. The fact that the adjudicating authority had not considered the exemption claim did not alter the operative position on entitlement under the notification.

---

---

Issues: Whether caustic soda and chlorine captively consumed for manufacture of wood pulp were entitled to exemption under Notification No. 10/96-C.E. during the relevant period.

Analysis: The claim under Notification No. 10/96-C.E. was not considered by the adjudicating authority. The goods in question were used captively for manufacture of pulp of the description covered by item No. 10 of the notification. On the admitted facts, the captive use of caustic soda and chlorine for manufacture of wood pulp brought the goods within the exemption.

Conclusion: The assessee was entitled to duty-free captive clearance under Notification No. 10/96-C.E., and denial of the exemption was unsustainable.

---