JUDGMENT

A.R. Lakshmanan, J.-The appellant-firm filed these appeals challenging, inter alia, the judgment and order dated 25-2-2000 passed by the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi being Miscellaneous Order No. M/12/2000-D in E/ROM/125/99-D in Application No. E/2618/90-D and final order No. 487/98-D dated 15-6-1998 in Appeal No. E/2618/ 1990-D, whereby the Tribunal has held that Taspa yarn manufactured by the appellant was covered under Heading No. 56.06 of the Central Excise Tariff and, therefore, confirmed the demand of duty of central excise of Rs. 5,63,0 66.40 and penalty of Rs. 50,000/-. The facts of the case in brief are as follows:-

2. The appellant-firm was issued a licence under the Central Excise Act, 1944 for carrying out the processing work of yarn. According to the appellant, since 22-5-1986, the doubled and/or multifolded yarns falling under Chapter 54 or Chapter 55 of the Schedule to the Central Excise Tariff Act, 1985 were wholly exempted from the duty of excise leviable thereon, provided such doubled or multifolded yarns were manufactured out of yarn falling under Chapter 54 or Chapter 55 of the said Schedule on which appropriate duty