S.L. Peeran, Member (J)

1. The appellant M/s. Amrit Banaspati Co. Ltd. (Paper Division) Saila Khurd, District (Hoshiarpur) has filed this appeal under Section 35-B of the Central Excises & Salt Act, 1944 against the impugned order in Annexure A-l passed by the Collector of Customs & Central Excise (Appeals), New Delhi rejecting their appeal against the order passed by the Assistant Collector of Central Excise Division, Jullundur in Annexure A-2 holding them liable for Rs. 8,46732 P. on the Fibre Recovery plant under Rule 173Q of Central Excise Rules, 1944 and not granting them the benefit of Notification No. 118/75-C.E.

2. The brief facts of the case are that the appellant are engaged in manufacture of paper falling under Tariff Item 17 of the Central Excise Tariff. The raw materials have to pass to the stage of pulp before the finished stage of paper is attained. The process of preparation of pulp involves grinding the raw materials and making a paste after mixing in water. The water keeps on draining out leaving a thin paste sheet which subsequently requires the shape of a paper after passing through number of rolls arranged in series. The drained water is an effluent water wh