JUDGMENT

B.P. Jeevan Reddy, J.-This appeal preferred against the judgment of the Cegat involves the interpretation of Notification No. 210 of 1979-CE dated 4.6.1979, issued by the Central Government under Rule 8 of the Central Excise Rules.

2. The appellant-assessee is engaged in the manufacture, inter alia, of "Horlicks" falling under Tariff Item 1-B of the Schedule to the Central Excises and Salt Act. It has a factory at Rajahmundry (Bommur) for manufacturing "Horlicks". The entire stock of Horlicks manufactured at Rajahmundry is, however, not cleared/removed after paying the duty at Rajahmundry, Only a portion of the production is put in unit containers/packages and cleared at Rajahmundry after paying the duty while the bulk of the production is sent to the appellant s factories situated at different places in India in bulk containers. There, the Horlicks is put in unit containers/packages and cleared after paying the duty.

3. For the purpose of manufacturing Horlicks, the appellant purchases barley malt which was dutiable under Tariff Items 68.

4. On June 4, 1979, the Central Government issued the aforesaid notification (No. 201 of 1979) exempting "all excisable goods ...... on whi