Hello
In CBSE passing requires 33% marks in both theory and practical separately.
23/70 in theory = 32.85% (Rounded to 33%)
25/30 in practical = 83.33% (Passed)
Since you met the minimum requirement you are passed in Chemistry.
For NEET form filling :
The marks obtained in the compartment exam ( 23 in theory + 25 in practical ) will be considered not the earlier failed attempt.
If they have already passed Chemistry in the compartment exam , it is not mandatory to attempt the improvement exam unless they want a better score.
Hope this gives you the clarity you need .
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