S.L. Peeran, Member (J)

1. In both these appeals, common issue of facts and law is involved. Hence, they are taken up together for disposal as per law.

Appeal No. 2900/88-C

2. This appeal arises from order-in-appeal dated 17-12-1987 passed by the Collector of Central Excise (Appeals) Madras. The question that arises for consideration in this appeal is the grant of benefit of exemption from payment of duty as per Notification No. 179/85-C.E., dated 1-8-1985 as amended by Notification No. 78/86-CE.

The appellants Neyveli Lignite Corporation, a Government of India Enterprise, is producing lignite as well as Agglomerated Lignite which falls under sub-heading 2702.00 and claimed exemption under Notification No. 179/85 as amended by Notification No. 78/86 which exempts goods falling under sub-heading 2702.00.

3. A show cause notice dated 27-2-1987 was issued by Superintendent of Central Excise, Virudhachalam under Section 11A of the Central Excises and Salt Act, 1944 read with Rule 9(1) of Central Excise Rules, 1944 demanding a duty of Rs. 19,30,227.65 P. on Raw Briquette Chips and lignite dust alleged to have been cleared by the appellants from 1-9-1986 to 31-1-1987 without payment of d