S.D. Jha, Member (J)

1. The question for decision in this appeal, originally filed as Revision Application to the Government of India, relates to correctness or otherwise of Order-in-Original dated 21-4-1982 passed by the Collector of Central Excise, Bombay-II. By the said order, the Collector held that the goods manufactured by M/s. Babu Lal Bhoti Lal Co. and M/s. Hind Industries were in fact manufactured by or on behalf of one manufacturer i.e M/s. Jagjivandas Co. He accordingly ordered M/s. Jagjivan Dass Co. (hereinafter called M/s. Jagjivan Dass and the other two concerns hereinafter called M/s. Babu Lal and M/s. Hind) to pay Central Excise duty amounting to Rs. 3,15,728.27 and he further imposed a penalty of Rs. 10,000/- on the appellants and the other two purported concerns.

2. Facts material for decision of this appeal are that Notification No. 176/77-C.E., dated 18-6-1977 as amended grants exemption in the matter of Central Excise duty on the basis of clearances. There is no dispute that if the clearances of the appellants and two other concerns described above are clubbed together, they would exceed the stipulated limit under the Notification, aforesaid. The proce