Judgment

Arjan Kumar Sikri, J.

1. These appeals are preferred by the Commissioner of Central Excise, Jamshedpur (hereinafter referred as 'the Revenue') questioning the validity of judgment and final order dated 18.2.2003 passed by the Customs, Excise Gold (Control) appellate Tribunal, Kolkata, (hereinafter referred as 'the CEGAT'). By the judgment the CEGAT has allowed the appeal of the Respondent herein and set aside the Order-in-Original passed by the Commissioner Excise levying the excise duty in the sum of Rs. 34,67,164/-. Penalty of an identical amount is also imposed under the provisions of Section 11A(C) of the Central Excise Act. Penalty of Rs. 8.50 lakhs was imposed Under Rule 173Q of the Central Excise Rules, 1944 with further penalty of Rs. 3.50 lakhs on the partner of the Respondent-firm. Consequently, these penalties have also been set aside.

2. The issue involved in the present case pertains to the entitlement of the excise exemption in terms of exemption Notification No. 1/93 dated 28.2.1993 issued by the Department. As per the said Notification small scale industries are allowed exemption in certain circumstances. We are, however, concerned with para 4 of the said Noti