V.T. Raghavachari, Member (J)

1. Show cause notice dated 20-1-1982 was issued to the appellants M/s. Mahabir Jute Mills Ltd., calling upon them to show cause why an amount of Rs. 2,43,894.95 paise should not be recovered from them as duty levied during the period April 1976 to 5-6-1979 in respect of laminated jute bags manufactured and cleared by them. On receipt of reply and on adjudication the Assistant Collector under his order dated 10-4-1982 confirmed the demand in respect of the period 24-11-1977 to 5-6-1979 only (Rs. 2,38,904.60 paise), since the demand for the earlier period was barred even under the extended period provided under Section 11A of the Central Excises and Salt Act. The appeal against the same was dismissed by the Collector (Appeals) under his order dated 16-9-1983. This appeal is against the said order.

2. We have heard Shri M. Chandrasekharan, Advocate for the appellants and Smt. Saxena for the Department.

3. The case for the Department is that during the relevant period the laminated jute bags manufactured by the appellants were classifiable under item 68 CET and that the same became exempt from duty under Notification 204/79-CE dated 6-6-1979 only but tha