V.T. Raghavachari, Member

1. Under notice dated 26-4-1982 a demand was made on the Respondents M/s. Inchek Tyres Ltd. for payment of duty under Tariff Item 68 Central Excise Tariff on scrap of tyres and tubes removed by them without payment of duty during the period 4-5-1975 to 9-12-1978. The respondents denied liability claiming that such scrap was not an excisable product. By order dated 29-6-1982 the Deputy Collector of Central Excise, Calcutta held that the scrap was liable for payment of duty under Tariff Item 68 Central Excise Tariff but, in confirming the demand, restricted it to the period 26-4-1977 to 9-12-1978 holding that the demand for the earlier period was barred by time. He further imposed a penalty of Rs. 2,000/-. On appeal the said order was set aside by the Collector (Appeals) under order dated 29-11-1982. This appeal by the Collector of Central Excise, Calcutta is against the said order.

2. None appeared today on behalf of the respondents in spite of issue of notice. We have heard Smt. Saxena for the Department and have perused the records.

3. From the orders of the lower authorities it transpires that the scrap on which duty was demanded arose in two ways (1)