JUDGMENT

SABYASACHI MUKHARJI, J.:— These are appelas under S. 35-L(b) of the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act), arising out of the order of the Tribunal, dated 26th November, 1987. The issue involved in the present case is whether the Acetic Anhydride manufactured by the respondent and sold to drug manufacturers i.e. M/s. IDPL is eligible to benefit of exemption under the notification No. 55/75 CE dated 1st March, 1975 as amended by the notification No. 62/78 CE dated 1-3-1978 as drug intermediate.

2. The respondent manufactured Acetic Anhydride falling under Tariff Item No. 68 of the Central Excise Tariff. It had filed refund claims for Rs. 1,57,442.08 and Rs. 1,14,587.74 being the duty paid on Acetic Anhydride during the period from 5-2-1981 to 28-6-1981 and from 23-7-1981 to 26-2-1982 contending that these goods were exempt from the payment of duty of excise leviable thereon under the notification referred to hereinbefore. It was contended that Acetic Anhydride is a drug intermediate and all such clearance for which the refund was claimed, had been made for delivery to the drug manufacturers. If drug intermediate is sold or supplied to a drug