D.C. Mandal, Member (T)

1. The main issue to be decided in this appeal is whether Liquid Chlorine and Dry Chlorine are comparable goods and whether assessable value determined for Liquid Chlorine, Under Section 4(1)(a) - Proviso (i) of Central Excises and Salt Act, 1944, should be applied to the Dry Chlorine captively consumed by the appellants in the same factory.

2. The facts of the case, in brief, are that the appellants are manufacturers of Caustic Soda. In the course of manufacturing Caustic Soda Chlorine Gas and Hydrogen Gas are obtained. A portion of the Chlorine gas is burnt with Hydrogen to obtain Hydrochloric Acid and the remaining portion is converted into Liquid Chlorine after drying and compressing and is stored as Liquid Chlorine. A part of Liquid Chlorine is sold as such in specially made cylinders and the balance is captively consumed in the manufacture of Trichloroethylene. The conversion of Liquid Chlorine into Dry Chlorine takes place in the Chlorine Plant itself before Dry Chlorine is cleared for captive consumption. Prior to 1.5.1980 central excise duty was payable on Chlorine Gas falling under Central Excise Tariff Item 14-H on the basis of Tariff Value and