A.J.F. D'Souza, Member (Technical)

1. This appeal under Section 35B of the Central Excises and Salt Act, 1944 by M/s. Guest Keen Williams Ltd., Howrah is directed against the order of the Collector of Central Excise, Calcutta bearing No. 28(26)82-Celler-29/83 dated 10-2-1983.

2. The appellants hold a Central Excise licence L-4 No. 1/ Steel Ingot/ Cal.V/63/1. The question before us relates to the scope of notification No. 237/ 75-CE dated 9-12-75 as amended by notification No. 112/77-CE dated 18-6-77 and 235/77 dated 15-7-77 as well as notification No. 156/79-CE dated 9-4-79, 53/80-CE dated 13-5-80 as amended by No. 16/81-CE dated 13-2-81. The appellants were charged for contravention of Rules 9(1), 173B, 173F and 173G(1)of the Central Excise Rules, 1944 for having manufactured steel ingots falling under item No. 26 of the First Schedule to the Act, from certain raw materials such as Ferro-Silicon, Ferro-Manganese, Silico Manganese Alloy, Ferro-Sulphur (H.C.), Ferro Chromium (L.C.), Ferro Molybdium, Ferro Titanium, Ferro Boron, Aluminium, Nickel, Sulphur, Dolomite, Flourspar, Iron Ore, Lime Stone, Met Coke, Graph and Lime, without furnishing full details of such materials used in the manufacture of the said goods, while availing of the partial and complete exemptions provided by the notifications referred to earlier and clearing 2,19,098 MT of steel ingots during period 11-1-1977 to 19-11-1981 without payment of appropriate duty leviable and thereby evading payment of central excise duty to the extent of Rs. 5,79,99,205.410.

3. The notifications referred to above provided for a partial or a total exemption on steel ingots falling under item 26 when manufactured with the aid of electric furnace provided they are manufactured from any of the following materials namely-

(a) Iron or steel melting scrap;

(b) a combination of the materials referred to at (a) above with fresh unused steel melting scrap on which the appropriate duty of excise has been paid; and

(c) iron in any crude form falling under Item No. 25 of the said Schedule on which the appropriate duty of excise has been paid in combination with the materials referred to at (a), (b) above.

(d) Skull scrap and runners and risers arising in the course of the manufacture of the said goods with the aid of electric furnace in combination with the materials referred to at (a), (b) or (c) above.

(e) imported melting scrap of iron and steel (other than heavy melting scrap of iron and steel) in combination with materials referred to at (a), (b), (c) or (d) above.

(f) imported sponge iron in combination with the materials referred to at (a), (b), (c), (d) or (e) above.

(g) indigenous sponge iron in combination with the materials referred to at (a), (b), (c), (d), (e) and (f) above.

4. Since the appellants had used various other ingredients/raw materials and did not disclose use of such ferro-alloys fluxing materials and other metals in the classification list, they were alleged to have suppressed material information and got the classification list approved by the proper officer. The notifications do not permit the use of additional agents in the manufacture of steel ingots and hence the appellants were liable to pay duty for the period from 11-1-1977 to 17-6-1977 at Rs. 100/- per M.T. plus Auxiliary duty and from 18-6-77 to 19-11-81 at Rs. 330/- per M.T. plus special excise duty at the appropriate rates under notification No. 147/77 dated 18-6-1977. After considering the reply to the show cause notice and hearing the appellants, the Collector held that it is a well-known Rule of law that a proviso should receive strict construction. The notification uses the word namely and the use of unspecified materials would disentitle the assessee from availing the exemption (1981-(47) S.T.C. 337-State of Tamilnadu v. Kasivanjanadar). Similarly, miscellaneous petition No. 69 of 1972 dated 21-7-1979 of the Bombay High Court and AIR 1961 S.C. 1956-Shah Bhojraj Kuverjee Oil Mills and Ginning Factory v.