Per Jyoti Balasundaram :

The above appeals arise out of the order dated 26th March, 1990 passed by the Assistant Collector of Central Excise, Chandigarh confirming a demand of Central Excise duty of Rs. 4,70,400/- on 16,000 tyres manufactured by the appellants during the period 10.5.88 to 16.6.88 on the ground that they were tyres of a kind used in two-wheeled vehicles viz. Mopeds classifiable under Heading 4011.30 attracting duty at the rate of Rs. 28/- per tyre and not cycle tyres of a kind used in cycles as claimed by the appellants and claimed to be falling under heading 4011.20 attracting nil rate of duty, imposing a penalty of Rs. 1,50,000/- on M/s. Poddar Tyres Pvt. Ltd. and penalty of Rs. 10,000/- on various branches of Poddar Sales Corporation. The Adjudicating authority has also confiscated tyres from various depots with option to redeem the same with varying fines.

2. We have heard Shri V. Sridharan, learned Counsel for the appellants and Shri A.K. Agarwal, learned DR for the Revenue and our findings are recorded as under:-

On 22.6.88, the Central Excise Staff of Ludhiana, visited the factory premises of M/s. Poddar Tyres Pvt. Ltd., who are engaged in the manufacture o