JUDGMENT

PUNCHHI, J.:- This is an appeal under S. 35-L of the Central Excises and Salt Act, 1944 against the judgment and order of the Customs, Excise and Gold (Control) Appellate Tribunal, Special Bench, New Delhi, dated 29-5-90 whereby the appeal of the Revenue stands allowed and the appellate order of the Collector (Appeals), Bombay, in favour of the appellant- company set aside.

2. The case of the appellant is that under a licence to manufacture drugs obtained on 27-7-82 from the Food and Drugs Administration, Maharashtra, it manufactured thenceforth medicinal Silicone products named Dimethicone of the description Dimethicon 20, Dimethicon-350, Dimethicon -2000 , Dimethicon -1000 and Dimethicon-100, and Simethicon. These products were stated to be manufactured strictly in accordance with pharmaceutical standards, requirements and specifications. Between August 1982 to January 1983, the appellant filed classification lists in respect of Dimethicone and Simethicone, terming them as drugs and pharmaceutical preparations classifiable under the residuary Tariff Item 68 of the Central Excise tariff but exempt otherwise from levy under some government notifications starting from 22-2-82 onwards reference to which would be made later. On 24-9-83, the superintendent of Central Excise informed the appellant that the drugs on the contrary were classifiable under Tariff Item 15A and not under Tariff Item 68 and that the benefit of exemption under the last of notifications being No. 234 /82 dt. 1-11-82 was not available to the appellant in respect of the said products. As directed by the Superintendent of Central Excise, the appellant filed the revised classification, but under protest, in respect of those products under Tariff Item 15A. The appellant thereafter successfully persuaded the Assistant Collector of Central Excise to obtain a report of the Deputy Chief Chemist Bombay as to whether or not the products conformed to pharmaceutical standards. The report received stated that Dimethicone of the varieties were poly silozane compounds (silicone oils) stated to have defoaming properties and Simethicon a form of jelly like mass composing of silicon oil and silicon. Beforehand on 22-11-83, a notice had been issued by the Department to the appellant to show cause why the products be not classified under Tariff Item 15A. The appellant in reply pointed out that the products were " bulk drugs" as defined in the up-to- dated Notification No. 234/82 dt. 1-11-82. The Department did not relent and on receipt of the report of the Deputy Chief Chemist, Bombay, issued a second show cause notice to the appellant. Finally on contest, the Assistant Collector passed an order on 4-1-85 rejecting the contention of the appellant holding that the products were classifiable under Tariff Item 15A. The Collector of Central Excise, Bombay, on appeal by the appellant set aside the order of the Assistant Collector. He took the view that both the products were drugs and pharmaceutical preparations and conforming to pharmacopoeial standards, classifiable under Tariff Item 68 and exempt from Excise Duty. Further appeal of the Revenue before the Tribunal was allowed and the order of the Assistant Collector was restored. The Tribunals view was that both the products were silicone and it was immaterial whether they were conforming as drugs, hence the classification under Tariff Item 15A. Therefore, this appeal.

3. Before we go on to deal with the diverse contentions raised by Mr. S. Ganesh, learned counsel for the appellant, we deem it prudent to give a broad outline of the interplaying of the charging S. 3 of the aforesaid Act and its Schedule I embodying the tariff items. Sec. 3 mandates that there shall be levied and collected, in such manner as may be prescribed, duties of excise on all excisable goods other than salt produced or manufactured in India, and a duty on salt manufactured in, or imported by land into, any part of India as. and at the rates set forth