V.P. Gulati, Member (T)

1. This is an appeal against the order of the Collector Central Excise (Appeals), Madras. The point that falls for consideration is whether Barium Carbonate which is used in the process of manufacture of caustic soda is eligible for the benefit of Notification 201/79 as amended by the 105/82-CE dated 28-2-1982. In terms of this Notification, all excisable goods in the manufacture of which goods falling under Item 68 of the GET have been used as raw-materials or component parts are exempted from payment of duty to the extent of the duty paid on the raw-material and components subject to the other provisions of the notification. The barium carbonate in the instant case is stated to be for purification of the brine solution and which after purification is electrolyzed resulting in the production of the caustic soda. The issue before the lower authorities was whether barium carbonate can be said to have been used for the manufacture of caustic soda as raw-material. The Collector (Appeals) concurred with the adjudicating authority and held that the said use of barium carbonate cannot be considered as a raw-material.

2. The learned Consultant for the appellants