G. Sankaran, Vice-President

1. By adjudication Order No. 23/85 dated 26-2-1985, the Assistant Collector of Central Excise, Visakhapatnam demanded from M/s Nellimarla Jute Mills Co. Ltd. (hereinafter referred to as "the appellants") under Central Excise Rule 9(2) read with Section 3(1) of the Jute Manufactures Cess Act, 1983, an amount of Rs. 3,77,095.68 being the cess on jute yarn produced and captively consumed by the appellants during the period from 1-5-1984 to 30-9-1984 confirming the show cause notice issued by the Superintendent of Central Excise on 30-10-1984.

2. Similarly, the Assistant Collector, by another order No. 29/85 dated 2-3-1985, confirmed the amounts of Rs. 2,91,620.57 and Rs. 45,256.57 demanded by show cause notice dated 30-10-1984 being the cess payable under Central Excise Rule 9(2) read with Section 3(1) of the Jute Manufactures Cess Act, 1983, during the period from 1-5-1984 to 30-9-1984 on sacking cloth produced and captively consumed within the factory and the differential amount of cess short-paid on gunny bags.

3. The appeals against the two aforesaid orders were dismissed by the Collector (Appeals) by his order dated 4-11-1985 which is impugned in the