JUDGMENT

BHAGWATI, J. (as he then was).—This appeal by certificate is directed against a judgment of a division bench of the High Court of Andhra Pradesh upholding a notice issued by the Assistant Collector of Central Excise, Nellore demanding a sum of Rs 6,96,177-09 representing the amount of differential duty in respect of mopeds manufactured by the appellants and cleared from their factory during the period from October 1, 1975 up to April 30, 1979. The facts giving rise to the present appeal are few and may be briefly stated as follows :

2. The appellants manufacture mopeds under the brand names of Suvega Standard, Suvega Deluxe and Suvega Samrat. These mopeds manufactured by the appellants are liable to excise duty under the Central Excises and Salt Act, 1944, (hereinafter referred to as the Act). The appellants have 179 dealers all over the country to whom 98% of the mopeds manufactured by them are sold. Not more than 2% of the mopeds are delivered at the factory gate ; the bulk of the mopeds representing about 80% of the manufacture are delivered to the various dealers at the depots maintained by the appellants. The appellants have entered into agreements with the dealers in