Judgment

SABYASACHI MUKHARJI, J.-This is an appeal under Section 35-L(b) of the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act) against the judgment and order of the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi (hereinafter referred to as the Tribunal) dated May 8, 1984.

2. The appeal is by the revenue. The respondent, Decent Dyeing Co., was dyeing acrylic yarn on job charges. The acrylic yarn was being received by the respondent from traders in the market or from the manufacturers of hosiery goods and were returning the same to them after completing the required process. The respondent was paying duty at the rate of Rs 10 per kg. in terms of Notification No. 125/75-CE dated May 12, 1975 on the presumption that base yarn had discharged duty liability before it was received for dyeing. A show cause notice requiring the respondent to show cause to the Assistant Collector of Central Excise as to why central excise duty amounting to Rs 4300 at Rs 24 per kg. leviable on 180 kgs. (as applicable to base yarn under tariff Item 18(i) of the Central Excise Tariff) should not be demanded under Rule 9(2) of the Central Excise Rules, 1944, was issued t