K.S. Dilipsinhji

1. This is an appeal under Section 35-B(2) of the Central Excises and Salt Act, 1944, filed by the Asstt. Collector of Central Excise, Dn. Chandrapur at Nagpur against the order No. 1038/NG-71/82 dated 27-7-1982 of the Appellate Collector of Central Excise, Bombay under which he has allowed the first appeal of M/s Ballarpur Industries Ltd., and permitted them to avail of proforma credit of duty on sodium sulphate under item 68 which is used by M/s Ballarpur Industries Pvt. Ltd., in the manufacture of paper in their factory. The Asstt. Collector has been authorised to file this appeal by the Collector of Central Excise, Nagpur. The learned departmental representative for the appellants has contended that sodium sulphate for which the credit of duty has been claimed is used in converting black liquor into white liquor. It is thus used for regeneration of spent chemical and not used directly in the manufacture of paper. It has also been argued that sodium sulphate is used in the recovery section of the mills to obtain white liquor. The black liquor is converted into white liquor by addition of sodium sulphate and firing the mixture in the recovery boiler. Thus sod