ORDER

Arijit Pasayat, J.-The appellants assail correctness of the order passed by the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi (in short CEGAT ). In the appeal before the CEGAT, the appellants had challenged a duty demand of Rs. 14,95,893 and penalty of Rs. 5,000/-, as imposed by the Adjudicating Authority and confirmed by the Collector, Central Excise and Customs (Appeals). CEGAT dismissed the appeal.

2. Background facts are: according to the appellants, they are engaged in the manufacture of articles of plastic i.e. Plastic insulated wares and vacuum flasks. They had two factories, one at Talegaon and the other at Chinchwad. The former one was considered to be the main factory. It was claimed that during the period of dispute, i.e. from 1.3.1990 to 21.8.1990, major portion of the articles manufactured by them in terms of value were exempt from Central Excise Licensing Control under Rule 174-A of the Central Excise Rules, 1944 (in short the Rules ). Since all the goods manufactured in their main factory were fully exempt from duty during the relevant period, only a minor portion of production was carried out in the Chinchwad factory. A show cause dated 28.8.1