1. This has been a proceeding pending before the Central Government which is now transferred to the Appellate Tribunal under Sub-section 2 of Section 35P of the Central Excises and Salt Act, 1944 (hereinafter in this order referred to as the 'Act').

2. The respondents namely M/s. Pyrites, Phosphates and Chemicals Ltd,, are a Government of India concern and are engaged in the mining of pyrites at Amjhore in the State of Bihar. The pyrites come out in the form of lumps and the bigger lumps are used in the manufacture of sulphuric acid while the smaller lumps (after crushing) are used for agricultural purposes in Uttar Pradesh and Bihar. The mining of pyrites by the respondents was commenced during the years 1967-68 and initially the low grade pyrites or smaller lumps were being dumped in and around the mine as refuse. After doing some research work in the matter, the respondents found that by manually screening such refuse, the same could be put to use for agricultural purposes and since then they started supplying the same as A.G. pyrites, i.e. Agricultural Grade pyrites for agricultural purposes by crushing these smaller lumps. In June, 1980 they received a letter from the Supe