V.P. Gulati, Member (T)

1. This is an appeal by the Revenue against the order of Collector of Central Excise (Appeals), New Delhi. Brief facts of the case are that the respondents M/s. Gwalior Rayon Silk Manufacturing Company manufacture Caustic Soda and utilize Titanium Substrate insoluble Anodes in the Electrolytic Cells in which the Electrolysis of Sodium Chloride takes place. These Electrodes are purchased by the respondents and duty under Tariff Item 68 was charged thereon. The respondents were refused permission to avail of the credit of the duty paid on these electrodes by way of set off in terms of Notification No. 201/79 by the Asstt. Collector for the reason that since these electrodes were part of the Electrolytic cells and equipment used in the manufacture of the Caustic Soda, the benefit of the notification could not be allowed. The Collector (Appeals) however, took note of the fact that Notification No. 201 of 79-CE extended the benefit of the set off in respect of Item 68. goods used in the manufacture of any finished excisable goods subject to the other conditions of the Notification and absorb the wording of the notification was wide enough to cover these goods