JUDGMENT

Santosh Hegde, J.-The Assistant Collector of Excise had made a demand on the respondent for clandestine clearance of bed-sheets, bed spreads etc. The said demand was confirmed by the Commissioner of Central Excise along with the demand made for wrongful availment of benefits under Notification dated 1.3.1983 for the period 1983-85 as also the order of seizure of goods with an option to the respondent to redeem the same, if it so desired, on payment of a redemption fine with a further direction to pay a penalty of Rs. 25 lacs. Against the said order, the respondent preferred an appeal before the Customs, Excise and Gold (Control) Appellate Tribunal (for short the tribunal which by its order dated 3.8.1998 allowed the said appeal.

2. Being aggrieved by the said order, the Revenue has preferred this appeal before us. Learned Attorney General appearing for the appellant, contended that though the items, namely, bed-sheets, bed spreads, table clothes, napkins etc. are manufactured by the respondent by cutting cotton fabrics from running length through their sister concern M/s. Dior International, the finished products were totally new marketable commodities, having distinct mar