ORDER
J.H. Joglekar, Member (T)
1. The single issue for determination in this case is whether Soda ash and Caustic soda used for cleaning of various machinery were eligible inputs in the manufacture of sugar or not.
2. I find that this issue has been settled earlier in favour of the asessees. Caustic soda flakes used for descaling of the brass tube in a sugar factory were held eligible inputs in the Tribunal judgment in the case of Commissioner of Central Excise, Jaipur v. J.K. Synthetics Ltd., reported in 1998 (98) E.L.T. 507 (Tribunal) which was followed in the case of Rajasthan State Ganga Nagar Sugar Mills v. C.C.E., Jaipur, reported in 1998 (28) RLT 281 (CEGAT).
3. The eligibility of caustic soda were examined in depth by the Tribunal in the case of L.H. Sugar Factories Ltd. v. Commissioner of Central Excise, Kanpur [Final Order No. A/393/98-NB(S)] dated 16-4-1998 as follows :-
“Caustic soda is used for three purposes. The first purpose for demineralisation of boiler feed water which is converted into steam which steam is used for production of sugar. The Tribunal in the case of Orient Paper Mills v. Collector of Central Excise, Indore‘, reported in 1997 (93) E.L.T. 501 (Tribunal) held that caustic soda lye for demineralisation of boiler water was eligible input.
The second purpose to which the caustic soda solution is put is in mixing with spray water in the vacuum pan to condensing the liberated sulphuric acid fumes. In this process caustic soda is used directly in the manufacture of sugar and, therefore, its admissibility becomes evident.
The third use of this caustic soda was for descaling of evaporator and pan bodies tubes. In two judgments related to ].K. Synthetics v. Collector of Central Excise, Jaipur, reported in 1996 (84) E.L.T. 203 (Tribunal) and 1996 (85) E.L.T. 286 (Tribunal), it has been held by the Tribunal that material used for cleaning of equipment and machinery used in the manufacture of final products were treatable as inputs under Rule 57A of the Central Excise Rules, 1944. The ratio of these judgments should apply here.
Thus, on all the three counts, I find the caustic soda becomes admissible inputs in the sugar industries. The appeal is allowed. Lower orders are set aside. Proper relief is ordered.”
4. The same is equally applicable in the case of Soda ash.
5. Consequentially the impugned order is set aside. The appeal is allowed with consequential relief.