P.C. Jain, Member (T)

1. Brief facts of the case are that the appellants manufacture patent and proprietary (PP) medicines falling under Central Excise Tariff Item 14-E as also pharmacopoeial medicines falling under Tariff Item 68. While claiming exemption from duty for PP medicines under Notification No. 80/80, dated 19.6.1980, the appellants filed declaration in terms of Notification No. 2/81 for exemption from licencing control inasmuch as they declared that the clearances of their medicine during the preceding financial year did not exceed Rs. 6,00,000/-. In declaring this clearance value of medicines, it is admitted that the appellants herein did not include the value of pharmacopoeial medicines which were fully exempted under Notification No. 55/75, dated 1.3.1975 under Tariff Item 68. The department has alleged and found in the impugned order that the appellants herein deliberately suppressed the clearance value of pharmacopoeial medicines and did not include the value thereof in the clearance value of the PP medicines. This deliberate suppression of facts, according to the Department, has led to the evasion of duty. Accordingly the adjudicating authority in the impugne