JUDGMENT

R.C. Lahoti, J. -The appellant is a company engaged in manufacturing electronic goods. It is a scheduled industry under the First Schedule of the Industrial (Development and Regulation) Act, 1951. One of the products of the appellant company is pre-recorded audio cassettes which is excisable under Chapter Heading 8524.22 of the Central Excise Tariff Act, 1985 which read as audio cassettes . Though the appellant is not required to pay central excise duty on pre-recorded cassettes by virtue of exemption provided by Notification No. 117/90 dated 16.5.90 nonetheless it files classification lists in respect of such pre-recorded audio cassettes consistently with the statutory obligation cast on the appellant. Under the industrial licence granted to the appellant by the Government of India in the year 1977 for manufacture of pre-recorded audio cassettes the licensed capacity as endorsed was 1.2 million pre-recorded cassettes per annum. The capacity was increased from time to time by expanding the same under the licences issued by the Government of India. In April 1987 the existing capacity of the appellant company was 10 million audio cassettes which was permitted by the Governme