D.C. Mandal, Member (T)

1. The facts of the case are that the appellants manufactured paints and varnishes falling under Item 14 of the Central Excise Tariff. In addition, they were also manufacturing goods falling under Tariff Item 68. In the Classification list filed subsequent to 7.2.74, they claimed exemption under Notification No. 71/78 dated 1.3.78 and Notification No. 80/80 dated 19.6.80. They also filed declaration that they were not manufacturing excisable goods other than those falling under Tariff Item 14. The Department found that they were manufacturing goods falling under Tariff Item 68 also, in or in relation to the manufacture of which no process was ordinarily carried on with the aid of power. They did not file declaration claiming exemption under Notification No. 179/ 77-CE dated 18.6.77. They also did not file declaration claiming exemption from licensing control as required under Notification No. 111/78-CE dated 9.5.78 for such goods. On verification of the accounts the Department found that the aggregate value of clearances of all excisable goods during the years 1979-80, 1980-81 and 1981-82 effected by the appellants exceeded Rs. 20 lakhs in each year. Mor