Per A.C.C. Unni :

The present appeals arise from Order-in-Original No. 09/Commr/96 dated 29.2.96 passed by the Commissioner of Central Excise, Meerut confirming a duty demand of Rs. 8,59,095.87 against the appellants. A penalty of Rs. 2 lakhs was also imposed apart from redemption fine of Rs. One lakh.

2. We have heard Shri P.K. Sahu, Ld. Advocate for the appellants and Shri H.K. Jain, ld. SDR for the respondents.

3. M/s. Goyal Gases P. Ltd. Sahibabad, one of the appellants before us, is engaged inter alia, in the manufacture of Oxygen gas classifiable under Chapter Sub-Heading 2804.11 ("Oxygen in Cylinder") of the Central Excise Tariff Act, 1985. Appellants claimed that they are also engaged in trading of gases like liquid Nitrogen, Liquid Argon, Hydrogen, Helium, etc. For this purpose, they buy these gases in bulk and repack them in cylinders.

4. By show cause notice dated 6.1.94, the Department alleged that the activity of mixing of various gases into cylinders result in the emergence of a new product leviable to Central Excise duty and since M/s. Goyal Gases Ltd. had undertaken to manufacture such mixtures of gases in their premises and had cleared them in the name of M/s. Pea