ORDER :

1. This is a statutory appeal filed by the assessee under Section 35L(b) of the Central Excise Act, 1944 (for short ‘the Act’) against the final Order No. 698 of 2002 dated 31st May 2002 in Appeal No. E/906/99 passed by the Customs, Excise and Gold (Control) Appellate Tribunal, South Zonal Bench at Bangalore (for short ‘the Tribunal’). By this order the Tribunal has rejected the appeal filed by the appellant and has held that Benzyl Methyl Salicylate (for short ‘BMS’) is marketable and therefore liable to excise duty.

2. The appellant-company is engaged in the manufacture of patent and proprietary medicines and organic chemicals (bulk drugs and intermediate) falling under Chapters 29 and 30 of the Central Excise Tariff Act, 1985 (for short ‘Tariff Act’) in their factory at Virgonagar, Old Madras Road, Bangalore. Appellant filed classification lists with effect from 5.6.1986 and 1.3.1987 in which they declared that one of the items, viz. BMS prepared in their factory was a non-excisable item.

3. The Revenue issued two separate show cause notices both dated 25th August 1987 wherein it was proposed that BMS was an item liable to duty under sub-heading 2913.00 of the Tariff Act pr