JUDGMENT- M.L. PENDSE, J.:---The petitioners are a Company registered under the provisions of the Companies Act, 1913 and are engaged in the manufacture of phenolic resins in the factory situated at Poisar Bridge, Kandivli. After manufacture of phenolic resin, certain fillers, pigments, plasticisers and other additives are added so as to modify the phenolic resins into what is popularly known as phenoli formaldehyde moulding powder. The Company also manufacture Urea Formaldehyde resin and Melamine Formaldehyde resin at the factory. After these resins are fully manufactured, certain fillers, pigments, plasticisers and other additives are added so as to modify the resins into what is known as Urea Formaldehyde moulding powders and Melamine Formaldehyde moulding powders.

Secion 3 of Central Excises and Salt Act, 1944 (hereafter referred to as the `Act) provides that there shall be levied and collected duties of excise on all excisable goods which are produced or manufactured at the rates set forth in the Schedule to the Act. Prior to January 1982, the Company paid excise duty on P.F. moulding powders in accordance with the rates prescribed under Item No. 15-A of the First Schedule. It

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