2000 (4) TMI 96

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....Hydrochloric Acid is further cleared without payment of duty for the purification of brine solution in the manufacture of Caustic Soda Lye in terms of the exemption for captive consumption contained in Notification No. 217/86?" 2. Heard Ms. Mythili, ld. Advocate for appellants and Shri S. Kannan, ld. DR. 3. Ld. Advocate submits that the condition under Notification No. 40/85 is that when the Hydrochloric Acid is produced from Chlorine, duty of excise is to be leviable thereon either in whole or in part. She submits that even NIL duly is levy of duty. Her second submission is that Notification No. 217/86 is not exemption notification in this strict sense but provides a procedure for removal of goods for captive consumption without paym....

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....even though no declaration was filed under Rule 57G for claiming Modvat and even though other Modvat procedure of maintaining RG-23A-Part I & II accounts were not followed, still such Modvat credit would be available to them on the duty paid on the Chlorine gas used in the manufacture of Hydrochloric Acid in view of the decision of the Tribunal in the case of Geetha Steel Rolling Mills v. CCE as in 1994 (73) E.L.T. 55 (T) which has been followed in a large number of pronouncements by the Tribunal thereafter. 6. We have carefully considered these submissions and records of the case. We find that latter submissions of ld. Advocate have in fact been also discussed in the order-in-original wherein the Asstt. Collector had noted that if the a....