1990 (11) TMI 234

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.... of Modvat credit 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 o....

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.... provisions of Rule 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, therefo....