JUDGMENT - V.C. DAGA, J.:---Rule.

By consent of the parties rule returnable forthwith.

2. These 2 petitions filed at the instance of the Revenue under Articles 226 and 227 of the Constitution of India, are directed against the order passed by the Customs Excise and Gold Control Tribunal (CEGAT for short), Mumbai. Parties are different, but issue for consideration is identical so this common order will dispose of both writ petitions.

3. Factual matrix giving rise to Writ Petition No. 303 of 2002 reveals that the respondent is M/s. Mahila Griha Udyog Lijjat Papad Ltd. (the respondent/assessee for short) having its registered office at 3, Kamal Apartments 149/150 S.V. Road, Bandra, Mumbai (W) and manufacturing Units having their addresses as follows : (i) Unit A Plot No. 91, near Dahisar Checknaka, Near Lion Pencil, P.O. Mira, District Thane (ii) Unit B Gautam Complex, Western Express Highway, Mira Road, District Thane. (iii) Unit C and D-C-3 Mira Industrial Estate. P.O. Mira, District Thane; (iv) Unit E Ajmera Estate, Western Express Highway, Near Richhi Rich P. Ltd., Versova Village, Ghod Bunder Road, District Thane, had taken out a Central Excise Licence bearing No. I/CH-34/R. IX/Th-III/1989, dated 12-1-1989 for the period of 1989 to 1993. The Assessee filed a classification List classifying the subject product as "synthetic detergent" manufactured by the assessee-respondent.

The dispute between the respondent/assessee and the department started when the said product viz., synthetic detergent were cleared without payment of central excise duty on the basis of the Exemption Notification No. 88/88-CE, dated 1-3-1988 on the basis of rural status.

4. A show cause notice dated 29-10-1997 being the first show cause notice was issued by the Central Excise Department to the respondent/assessee for the period 1-10-1992 to 30-9-1997 demanding central excise duty in the sum of Rs. 19,31,30,535.61. Three more show cause notices also came to be issued to the respondent-assessee for the subsequent periods based on the identical grounds were disclosed in the first show cause notice dated 29-10-1997. The contents thereof are not necessary for the present, as such no details thereof are referred to herein.

5. The aforesaid first show cause notice came to be adjudicated upon by the Commissioner of Central Excise, vide adjudication order dated 12-11-1998, consequently demand in the sum of Rs. 19,31,30,535.61 came to be confirmed. Penalty of equal amount also came to be imposed on the respondent/assessee. In the adjudication order, it was also held that considering location of the Industrial units of the respondent-assessee in the municipal area of Mira Bhynder, the respondent/assessee was not entitled to claim exemption on the basis of rural area status. One more adjudication order came to be passed on 10-1-2000 disposing of other show cause notices and confirming duty demand in the sum of Rs. 3,03,06,897.28 based on identical reasons and levying equal amount of penalty.

6. The respondent-assessee challenged the said two adjudicating orders before the CEGAT based on the contention that factory units of the respondent/assessee located in the rural area, entitled to claim exemption in terms of the Exemption Notification No. 88/88-CE dated 1-3-1988. Appeal was also preferred at the instance of the petitioners' Central Excise Department; inter alia, seeking modification of the second adjudication order dated 10-1-2000 seeking to claim interest on the amount of duty demanded under the Central Excise Act and the Rules.

7. The CEGAT after hearing the parties vide its order dated 23-10-2001 disposed of both the appeals holding that locality of village; Mira is a rural area, the manufacturing units being in the rural area are entitled to claim rural status as such entitled to claim exemption. Alternatively, it was held that even if the question of rural area is decided against the assessee, the product manufactured by the respondent-assessee is a 'Laundary soa

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