V.P. Gulati, Member (T)

1. This is an appeal against the order of Collector of Central Excise, Hyderabad. The issue involved in the appeal is the classification of ANFO. The product is produced by mixing ammonium nitrate with fuel oil and used for the purpose of blasting of rocks. This appeal was heard along with other appeals on the same issue in the case of M/s. Singareni Collieries Ltd., in Appeal Nos. E/462/88-C, E/2577/87-C and the matter was argued by another advocate on behalf of the appellants in that case.

2. In the proceedings in this case, a show cause notice was issued on 7.4.1987 and the duty was demanded in respect of ANFO produced and captively consumed by the appellants for the period upto 9th February, 1987 as prepared explosives under Heading 3601.00 upto 9.2.1987 and Heading 3602.00 from 10.2.1987. They were alleged to have manufactured the goods without the Central Excise licence and cleared the same without payment of duty and observing the necessary Central Excise formalities as required under the Central Excise Law. Contravention of Rules, 9(1), 173B, 173C, 52A, 173G, 174 of the Central Excise Rules, 1944 was indicated and the duty was demanded under Rul