JUDGMENT

DUTT, J.:— This appeal has been preferred-by the appellant, Coromondal Fertilisers Limited, under S. 130E(b) of the Customs Act, 1962 and is directed against the order dated April 11, 1984 of the Customs, Excise and Gold (Control), Appellate Tribunal, New Delhi, hereinafter referred to as the Appellate Tribunal. By the said order the Appellate Tribunal affirmed the order dated July 1, 1982 of the Collector of Customs (Appeals), Madras, upholding the order of the Assistant Collector of Customs dated February 20, 1980, confirming the demand for Rs. 60,34,419.56 raised on the appellant.

2. The appellant carries on the business of manufacture of chemical fertilisers and, for that purpose, the appellant requires Mono-Ammonium Phosphate which, it is said, is not manufactured in India. At the material time an importer of Mono-Ammonium Phosphate was liable to pay customs duty as per sub-item 3 of Item 31.02/05 of the First Schedule to the Customs Tariff Act, 1975. The rate of duty that was applicable to Mono-Ammonium Phosphate was 60% ad valorem. In addition, an Auxiliary duty at the rate of 15% ad valorem was also applicable at the relevant time.

3. The Central Government issued a Notification No. 178/76-Cus dated 2-8-1976 as follows :-

"G. S. R. 547(E) - In exercise of the powers conferred by sub-sec. (1) of S. 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts Ammonium Phosphate falling within Chapter 31 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), when imported into India for use as manure, from the whole of the duty of customs leviable thereon which is specified in the said First Schedule :

Provided that in respect of any consignment of ammonium phosphate imported under cover of a claim for exemption from duty in pursuance of the provisions hereof, the importer shall execute a bond in such form as may be prescribed by the Assistant Collector of Customs, binding himself, in sum equal to the amount of duty ordinarily leviable on such articles, to pay on demand the duty leviable on such quantity thereof as is not proved to the satisfaction of the Assistant Collector of Customs to have been used as manure."

4. It appears from Notification No. 178/76-Cus that the whole of the duty of customs leviable on Ammonium Phosphate was exempted when the same was imported into India for use as manure. Pursuant to the exemption, the rate of auxiliary duty of customs was reduced to 5% ad valorem.

5. On May 14,1975, the appellant wrote a letter to the Deputy Collector of Customs informing him that the appellant had to urgently import 5000 M.T. to 6000 M.T. of Mono-Ammonium Phosphate for use as a raw material for the production of complex fertilisers. In the said letter, it was also stated by the appellant that according to its understanding of the Customs Tariff Act and the said Notification No. 178/76-Cus dated 2-8-1976, Mono-Ammonium Phosphate used in the production of complex fertilisers, which in turn could be used as manure, was exempt from the basic customs duty as well as auxiliary duty. The appellant requested the Deputy Collector of Customs to confirm the said understanding of the appellant at an early date. The said letter of the appellant was replied to by the Assistant Collector of Customs, Visakhapatnam, by his letter dated May 19, 1979, in which it was stated, inter alia, that under the said Notification No. 178/76-Cus dated 2-8-1976, only customs duty was exempted, provided a bond in the prescribed form was executed to the effect that the goods were for. use as manure. It may be stated that there is nothing in the said letter of the Assistant Collector of Customs confirming the said understanding of the appellant that Mono-Ammonium Phosphate used in the production of complex fertilisers was exempt from the basic customs duty as well as auxiliary duty. In effect, the Assistant Collector of Customs only reiterat