K L. Rekhi, Member (T)

1. The appellants are aggrieved of the demand for central excise duty of Rs. 3,42,084 confirmed against them for the period 4-5-76 to 31-3-77. The demand relates to recovery of base stage duty on grey (i.e., plain or non-texturised) acrylic yarn and arose out of the peculiar wordings of Item 18 of the Central Excise Tariff and the exemption Notification No. 125/75-CE, dated 12-5-75. In order to facilitate the understanding of the issues involved in this appeal, we reproduce below the Tariff entry as well as the exemption notification as in force at the material time :-

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"(11) In exercise of the powers conferred by Sub-rule (1) of Rule 8 of the Central Excise Rules, 1944 and in supersession of Notification No. 105/75-CE, dated 30-4-75, the Central Government hereby exempts textured yarn of the description specified in col. (3) of the Table below and falling under such sub-items of Item No. 18 as are specified in the corresponding entries in col. (2) of the said Table, from so much of the duty of excise leviable thereon as is in excess of the duty specified in the corresponding entries in col. (4) of the said Table.

Vide Notfn. No. 125/75-CE, dated