S.L. Peeran, Member (J)

1. Both the appeals raise common question of facts of law and hence they are taken up together for its disposal as per law.

E/3139-3141/90-D

These appeals arise from Order-in-Original No. 28/90 dtd. 12-6-1990 passed by C.C.E., New Delhi.

2. The appellants M/s. Kanam Foam Industries (hereinafter referred to as KFI) are manufacturers of rubber foam goods namely Micro Cellular (M.C.) sheets Hawai Chappals. The department claims that these goods fall under Heading 16A(1) of the First Schedule of the erstwhile tariff of the CESA, 1944 and after the introduction of new Tariff under Tariff Heading 9404.00 of CET Act, 1985.

3. The department officials raided the premises of the appellants and also the residences of the proprietor of the appellant industry Shri. P.V. Varghese and that of Shri AVM Achuthan on 10-9-1987 and searches were carried on. This raid was done on the information received by the department that the appellants were incorrectly availing the exemption granted to SSI units under Notification Numbers 83/83, 85/83 and 175/83. As a result of the raid, and the extensive investigation done by the department, the appellants were issued with a show cause