Kashi was home to several historic Shiva temples. The chandeeshwar Temple is one among them. Kashi Khand mentions the significance of this Temple.
Legend
Lord Shiva is said to have been detailing the significance and heavenly capabilities of several Shiv Lings in Kashi Khand, Chapter 73. He recited the Shiv Lings in sets of fourteen, among other things Chandeeshwar is the eleventh Ling in the second group of fourteen Lings. Lord Shiva has spoken on the significance of worshipping these Lings.
No rebirth will occur to someone who worships Lord Shiva’s idol among the aforementioned fourteen Lings. These Lings are priceless gems. If a person with complete divinity accepts the names of these Lings, including Chandeeshwar, he would be protected from all kinds of dangers and troubles in addition to worshipping them.
Lord Shiva also said that Chandeeshwar Ling would always house him and that everyone who worshipped him would reach Mukti. Without a shadow of a doubt, a devotee who visits Avimukta Kshetra (the central area of Kashi) and worships him will achieve Moksha.
Knowledgeable Pundits hold the view that if a light is lit in front of Chandeeshwar with all divinity in memory of any departed soul, within 27 days of the death, the departed soul would attain liberation (Moksha) and enter the abode of the Lord. The name of this lamp is Moksha Deepam or Mukti Deep.