Admissibility of Modvat on Chlorine used in the manufacture of Bleach Liquor - Central Excise - 4/90-CX.8

Admissibility of Modvat on Chlorine used in the manufacture of Bleach Liquor Circular No. 4/90-CX.8 dated 18-1-1990 [From F. No. 267/2/90-CX.8] Government of India Central Board of Excise and Customs New Delhi Subject : Admissibility of Modvat on Chlorine used in the manufacture of Bleach Liquor. Attention is invited to the minutes (Point No. 4) of the South Zone Collectors Conference held at Coimbatore on 9th and 11th of September, 1989 on the above subject. To manufacture Bleaching powder, Chlorine in liquid form is injected into Slaked lime. The rate of absorption of Chlorine by slaked lime is not uniform therefore, some quantity of unabsorbed chlorine gas is vented into lime slurry resulting information of bleaching liquor which is exempted under Notification No. 31/89, dated 1-3-1989. (chelorine gas cannot be vented into air because of pollution control regulations). Doubts have been raised whether Modvat credit could be permitted on that part of Chlorine which is used in the manufacture of Bleach Liquor. (exempted fully). It was observed during the aforesaid. Conference that Bleach Liquor was exempted from duty under Notification No. 31/89, dated 1-3-1989 and was cleared for home consumption. Therefore it could not be treated as a waste in terms of Rule 57D. It was therefore recommended by the conference that no Modvat credit would be admissible on that part of Chlorine which was used in the manufacture of Bleach Liquor. The decision of the conference has been accepted by the Board. All pending cases may be decided accordingly and credits wrongly availed, if any, may be recovered. The field formations and Trade interests may be informed suitably.