D.N. Lal, Member (T) and S. Venkatesan, Sr. Vice President

1. As the issue involved in the two appeals, originally preferred as revision applications before the Central Government, is identical and flow from a common order-in-appeal dated 24-3-1977 passed by the Appellate Collector of Central Excise, New Delhi, the same were taken up for hearing and disposal together. The case of the appellants as set out at length by their advocate Shri Bedi is as follows :

2. The appellants are engaged in the manufacture of aerated waters and at the relevant time had two such units, one at Connaught Lane and the other at Najafgarh Road. The aerated waters were brought under the Central Excise Tariff w.e.f. 1-3-1970 (Item 1-D GET). The rate of duty was on ad valorem basis. The appellants wrote a letter dated 1-3-70 addressed to the Superintendent, Central Excise, MOR HI stating as under :

"Kindly approve the following wholesale prices of our aerated water as shown below :-

xxx xxx xxx

The Superintendent made the following endorsement dated 5-3-1970 on the body of the said letter from the appellants.

"Provisionally approved subject to verification."

At the same time, the appellants were orally asked