2004 (3) TMI 209

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....99, dated 25-2-2000 dropping the proceedings initiated under said two show cause notices but not allowing Modvat credit of Rs. 6,32,291/- (Rupees Six Lacs thirty-two thousand two hundred ninety one only) availed on Caustic Soda & Chlorine used for manufacture of intermediate exempted products which are further used in the manufacturing process of finished dutiable products. The Dy. Commissioner of C. Excise, Kalyan has further imposed a penalty of Rs. 5,000/- was imposed. The Dy. Commissioner has further disallowed Modvat on kraft paper. The restoration of Modvat credit in respect of Caustic Soda & Chlorine to the tune of Rs. 6,32,291/- was not allowed holding that Modvat credit of duty paid on Caustic Soda & Chlorine used for manufacture o....

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....credit of Rs. 6,32,291/- reversed by them is hit by limitation of time bar is not legally correct. As Modvat credit was disallowed the provisions of Section 11B are not applicable and hence the said stand taken by the Commissioner of C. Excise (Appeals). (b)        Input Chlorine & Caustic Soda used in the manufacture of intermediate product Sodium Hypochlorite and the same is captively used in the manufacture of Rayon yarn. The Caustic soda is also used in the Sodium sulphide which is partly captively used in the manufacture of the final product viz. Rayon yarn and partly sold to outside parties on payment of duties. (c)        Caustic Soda is also used for deminer....