JUDGMENT

D.P. Wadhwa, J.-This appeal is directed against the order dated November 5, 1997 of the Customs, Excise and Gold (Control) Appellate Tribunal (for short the Tribunal ) allowing the appeal of the respondent and directing that duty of Central Excise was payable under Section 3(1) of the Central Excise and Salt Act, 1944 (for short the Act ) and not under proviso to Section 3(1) of the Act as claimed by the appellant.

2. Section 3(1) of the Act with proviso, in relevant part, is as under :- "Section 3. Duties specified in the Schedule to the Central Excise Tariff Act, 1985 to be levied.-(1) There shall be levied and collected in such manner as may be prescribed duties of excise on all excisable goods other than salt which are produced or manufactured in India and a duty on salt manufactured in, or imported by land into, any part of India as, and at the rates, set forth in the Schedule to the Central Excise Tariff Act, 1985 :

Provided that the duties of excise which shall be levied and collected on any excisable goods which are produced or manufactured,-

(i) in a free trade zone and brought to any other place in India; or

(ii) by a hundred p