Per S.L. Peeran :

This appeal arises from the order in original No. 44/91 dated 13.5.91 passed by the Additional Collector of Central Excise confirming duty demand of Rs. 1,42,333.93 under Rule 9 (2) of the CE Rules read with Section 11A besides imposing penalty of Rs. 2,000/- on the appellants in terms of Rule 9 (2), 173Q and 226 of the CE Rules, 1944.

2. Appellants were alleged to have manufactured and cleared Die Cast Rotors falling under heading 8503.00 without payment of duty, without following any procedure and suppressed the fact of the said manufacture and clearance from the department. The appellants contended that this Die Cast Rotors were used in the manufacture of Monoblock Pumps in terms of Notification No. 142/88 dated 18.4.88.

3. The learned Additional Collector had held that benefit of the Notification was not available as the appellants had not followed the chapter X procedure as contained in the CE Rules. He has also not disputed the fact that the item in question was being used in the manufacture of Mono Block Pump which was exempted, but as the appellants have not followed procedure outlined under Chapter X, they are not entitled to the benefit. He has als