ORDER

The short question that arises for our consideration in these appeals, which arises from the judgments and orders dated 10.2.1997 and 26.3.1996, as regards jurisdiction of the authorities under the Central Excise Act, whether it is permissible to resort to penalty proceedings or forfeiture of goods for non-payment of additional duty in terms of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (for short the Act ) by taking recourse to the provisions of the Central Excise Act and Rules framed thereunder.

2. The respondents herein carry on business of manufacture of man made fabrics. They have alleged to have misdisclosed the composition of certain sorts of fabrics. They were further alleged to have under valued goods by not paying duty on the amount realised through debit notes. The Collector, by his order dated 17th November, 1987, confirmed the levy of duty, amounting to Rs. 1,19,453,59. The Collector held that 35 bales of Fabric of Sort Nos. 1200 and 1300 are liable to be confiscated, but since the goods had already been released, he appropriated a sum of Rs. 10,000/- towards the value of goods. He also imposed the penalty of Rs. 50,000/-. Agg