Captive use in manufacturing process justified waiver of pre-deposit for duty and penalty on caustic soda dispute.

Caustic soda used captively for purification of brine, which was then used in the manufacture of caustic soda, was treated as having been used within the factory in the manufacturing process. On the basis of the relevant notifications and technical literature, the Tribunal accepted the applicants' contention at the prima facie stage and found sufficient grounds to dispense with pre-deposit of duty and penalty. Pre-deposit of duty and penalty was waived.

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Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit of duty and penalty in respect of caustic soda used captively for purification of brine in the manufacture of caustic soda.

Analysis: The relevant notifications and technical literature indicated that caustic soda is used for purification of brine, and that brine so purified is further used in the manufacture of caustic soda. On that basis, the applicants' contention that the disputed goods were used within the factory in the manufacturing process was accepted at the prima facie stage. The Tribunal therefore found sufficient grounds to dispense with pre-deposit.

Conclusion: Pre-deposit of duty and penalty was waived.

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