K.L. Rekhi, Member (T)

1. The appellants are aggrieved by the impugned orders in pursuance of which central excise duty amounting to Rs. 57,688.27 has been demanded from them on scientific and Industrial Instruments manufactured by them through M/s. India Electrodes and Components ('IEC' for short) and cleared unauthorisedly without payment of central excise duty. Penalty of Rs. 25,000/- has also been imposed on them.

2. We have heard both sides and have carefully considered their submissions and the record. The appellants pressed before us only the following two arguments:

(1) Since the appellants supplied only the raw materials and all manufacturing operations were performed by M/s. IEC, M/s. I.E.C. were the manufacturers and not the appellants; and

(2) the demand show cause 'notice issued on 24.2.1979 for the period 6.3.1975 to 17.1.1978 was time barred. As no allegation of fraud or suppression had been made in the show cause notice and hence the normal time limit of six months applied.

3. We find from the order-in-appeal that the appellants had taken the first plea before the Central Board of Excise and Customs also On this point, paragraph 6' of the Board's order-in-appeal rea