P.C. Jain, Member (T)

1. These are two appeals transferred to the Tribunal in terms of Section 35P of the Central Excises Salt Act, 1944.

2. One appeal has been filed by the assessee M/s Prithvi Plastic Packaging and the other appeal has been filed by the department. The impugned order is that of Central Board of Excise Customs passed by it on appeal by the assessee against Collector of Central Excise, Baroda's order-in-original. Brief facts, in so far material, are as follows :

3. The assessee is manufacturing H.D.P.E. Granules either on its own or on the basis of granules supplied by another proprietary concern Prithvi Polymers on job basis. Thereafter the fabric is cut into shape and size and then stitched into HDPE sacks. In the financial year 1979-80 till around August 1979, the assessee had been manufacturing HDPE fabrics and sacks in the same premises at 42, Industrial Estate, Vatva. Later on, it transferred the stitching operation of the cut to shapes and size fabrics to another premises at C-l/19, Vatva where stitching was done by the two persons employed by the assessee as contractors. The contractors were doing the stitching of the sacks on job basis after payment