1991 (9) TMI 185

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....his appeal is filed by the Revenue against the order of the Collector of Central Excise (Appeals), Madras. The short point that falls for consideration is whether the inputs used for manufacture of Caustic Soda lye which are finally used for the manufacture of PVC resin and covered by exemption Notification are eligible for the benefit of MODVAT CREDIT. The original authority in this regard has he....

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....eged in the show cause notice." 2. The Collector (Appeals) on application filed by the Assistant Collector in terms of Section 35E(4) of the Central Excises & Salt Act, 1944 confirmed the order of the original authority and held as under : "I have carefully examined the records and considered the respondents' contentions. As for respondents' contention that caustic soda lye and flakes are no....

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....uts shall not be denied on the ground that any intermediate products come into existence during the course of manufacture of final products which are for the time being exempt from the whole of duty. Inputs such as Barium carbonate and soda ash are being used in or in relation to the manufacture of caustic soda lye and caustic soda flakes. The process of manufacture is complete at this stage and t....

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....cess for which by exemption notification no duty was payable in respect of the said two items. The lower authorities have held the two products are in the nature of intermediate products in terms of Rule 57C of the Central Excise Rules and the respondents are eligible for the benefit of input credit by reason of specific use. There is nothing to show that the caustic soda lye and flakes are not be....