G. Sankaran, Senior Vice-President

1. This is an appeal against the Collector (Appeal)'s Order No. 353-CE/KNP/85 dated nil setting aside the order dated 9-1-1981 passed by the Assistant Collector of Central Excise, Kanpur, confirming a demand for Rs. 1,09,759.06 against the respondents.

2. Briefly stated, the facts of the case are that the respondents manufacture medicines. During the period from 1-3-1978 to 30-6-1979, they effected clearance of certain medicines at nil rate of duty. The pilfer proof caps ("P.P. Caps", for short) fixed to the containers had on them the legend "Bengal Chemicals" which the Department, construed, rejecting the respondents' contention to the contrary, was a brand name rendering the medicines liable to classification and assessment to duty as "Patent or Proprietary Medicines" under Item No. 14E of the First Schedule ("the CET", for short) to the Central Excises and Salt Act, 1944. According to the Assistant Collector, the respondents had suppressed the fact of registration of the words "Bengal Chemical" under the Trade & Merchandise Marks Act, 1958, and therefore, no part of the demand for duty, though issued on 19-11-1979, was barred by limitation.