Per V.K. Agrawal :

In this appeal, filed by M/s. S.S. Bedi Sons, the issue involved is whether Central Excise duty is payable on Lay Flat Tubing.

2. Shri S.C. Kamra, learned Advocate, submitted that the Appellants manufacture poly-bags which are exempted from payment of duty under Notification No. 4/97-CE dated 1.3.97; that they obtained Lay Flat Tubing as an intermediate product in the manufacture of poly-bags from plastic granules; that the impugned goods were exempted from payment of excise duty right from 1994-95 till today except for the financial year 1997-98; that the Additional Commissioner under the Adjudication Order No. 170/99 dated 7.10.99 has demanded the duty in respect of Lay Flat Tubing cleared during the period from 1.4.97 to 31.12.97 and imposed penalty of Rs. 50,966/- equivalent to the amount of duty under Rule 173Q of the Central Excise Rules, read with Section 11AC of the Central Excise Act; that the Commissioner (Appeals) under the impugned Order has confirmed the demand and the penalty. He, further, submitted that the entire demand is time barred as the show cause notice was issued on 7.4.99 i.e. beyond the normal time limit of 6 months; that there was n