JUDGMENT

BHARUCHA, J. :- The appellants manufacture Liquid Paraffin I.P. It is the case of the appellants that the said liquid paraffin is packed in drums which are labelled. The labels bear the appellants monogram "Lubri-Chem". The said liquid paraffin is supplied to pharmaceutical industries. The pharmaceutical industries use the said liquid paraffin as an intermediate in the manufacture of drugs. The said liquid paraffin was classified for the purposes of payment of excise duty under T.I. 68 and, as a drug intermediate. cleared without payment of excise duty by reason of an exemption notification.

2. On 6th August, 1981, the Superintendent of Central Excise issued to the appellants a notice which stated that they had manufactured and cleared the said liquid paraffin, which fell under T.I. 8, without payment of excise duty thereon. For the period 1st February, 1981 to 31st July, 1981, they were required to show cause why duty in the sum of Rs. 30,677.04 should not be recovered from them and why penalty should not be imposed upon them. An identical notice was issued on the same day for the period 19th June, 1980 to 31st January, 1981; the amount claimed thereunder was Rs. 84,836.35