1997 (12) TMI 320

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.... 2. Arguing the stay application for dispensing with the pre-deposit of the duty as aforesaid and penalty of Rs. 2.00 lakh, Shri A.P. Mathur, the ld. Advocate, submitted that the Applicants are engaged in the manufacture of Caustic Soda; that for manufacture of Caustic Soda, they require Brine solution; that brine solution contains a number of impurities; that these impurities are to be removed before the brine solution can be converted into Caustic Soda. He submitted that for removing these impurities, Caustic Soda is used. He submitted that thus, Caustic Soda is both an input and also the final product. The ld. Counsel sumitted that during the material period, viz. August, 1990 to March, 1995, the applicants used 2,565.499 MT of c....

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....he powers conferred by sub-rule (1) OF RULE * (sic) OF THE Central Excise Rules, 1944, the Central Government hereby exempts caustic soda falling under sub-head 2815.00 of the Schedule to Central Excise Tariff Act, 1985 (5 of 1986), issued for purification of brine within the factory of manufacture to be used in the production of either excisable or non-excisable goods within the same factory upto a maximum of 3 per cent of Sodium chloride contents of the common salt put into the process of purification of brine from the whole of the duty of excise leviable thereon". The ld. Counsel submitted that this notification clearly indicates that caustic soda is used in the process of manufacture of caustic soda. He submits that on merits, his case ....

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....products; that in this case, no other excisable or non-excisable products except caustic soda is reported to be produced. It was also argued by the ld. SDR that Caustic Soda used for brine purification does not increase the quantity of final product i.e. caustic soda in the second phase of production of the final product. 6. The ld. SDR submitted that there was suppression of facts inasmuch as it was no where indicated specifically that caustic soda was being captively used in the manufacture of caustic soda. He submitted that both on merits as well as on limitation, the lower authorities have rightly held against the Applicants and, therefore, prayed that the Applicants may be directed to deposit the entire amount of duty and penal....