Jyoti Balasundaram, Member (J)

1. The issue for determination in the above appeal against the order dated 17-10-1985 of the Additional Collector of Central Excise, Indore is whether assembly, erection and commissioning of "Evaporator J" plant amounts to manufacture of excisable goods leviable to duty under TI 68 of the Schedule to the erstwhile Central Excise Tariff. The demand of duty of Rs. 1,05,000/- has been confirmed on Evaporator J plant assembled and erected at site in Jan. 84 in the Staple Fibre Division of the appellants' company and a penalty of Rs. 20,000/- has also been imposed by the adjudicating authority. Hence this appeal.

2. We have heard Shri J.P. Gupta, Learned Senior Counsel and Shri S.K. Sharma, learned D.R.

3. The appellant company has a Staple Fibre Division and an Engineering Division at Nagda, M.R In the course of manufacture of viscose fibre at the appellants' factory at Nagda, Sodium Sulphate in liquid form is obtained as a by-product. The plant known as "Evaporator J" is necessary to dry up the liquid sodium sulphate and to reduce it to powder form for packing it and making it marketable. Evaporator J is a plant consisting of several vertical tankers o