JUDGMENT

Bhan, J.—These civil appeals are directed against the common impugned order Nos. 829 and 830 of 2000 dated 4.10.2000 passed by the Customs, Excise & Gold (Control) Appellate Tribunal (hereinafter referred to as "the Tribunal") in Appeal Nos. E/1622/99-A and E/2095/2000-A. Revenue has filed Civil Appeal Nos. 4075 - 4076 of 2001 against the deletion of duty demand of Rs. 17,67,13,315/- raised in the show-cause notice dated 1.10.1986 for the period September 1981 to February 1983 and the assessee has filed Civil Appeal No. 754 of 2001 against the levy of penalty of Rs. One crore. Since these appeals are directed against the common order passed by the Tribunal, we also propose to dispose them of by a common order. The facts are common in both the sets of appeals.

2. This case has a chequered history and has had various round of litigation in different forums. In order to determine the controversy and the point involved in these appeals the following facts may be noticed.

M/s National Tobacco Company Limited Agarpara, a manufacturer of cigarettes falling under erstwhile Central Excise Tariff Item No. 4 II(2), and holder of Central Excise Licence L-4 No. 3/84 for the manufactu