K.L. Rekhi, Member (T)

1. This order is made in continuation of our Miscellaneous Order No. 37/86-B1 dated 28.4.1986 in which, by a majority judgment on a preliminary point, we held that the revision application filed by the appellants under the then Section 35A of the Central Excises and Salt Act, 1944 before the Central Board of Excise and Customs was maintainable and ought to be heard on merits. The said revision application, on transfer of the proceedings to this Tribunal is now before us for disposal as if it were an appeal. We have heard the merits of this appeal on 9.7.1986 and 10.7.1986 and this order is made to dispose of the said appeal.

2. In the impugned order, the Collector has held that in the guise of bringing the defective compressors to their factory and clearing them after repairs/re-conditioning/re-making in terms of Rule 173H of the Central Excise Rules, 1944, the appellants used the returned compressors merely for salvaging a few serviceable parts therefrom which they utilised in the manufacture of new compressors and that they cleared those new compressors without payment of duty by engraving on the new compressors the serial number of the old compressors,