Per Shri V.K. Asthana :

This is an appeal filed by the appellants against the orders passed by the Collector of Central Excise, Bangalore in Order-in-Original No. 77 dt. 17.9.93. In the said order, the Ld. Collector has confirmed the payment of duty amounting to Rs. 4,15,445.85 under proviso to section 11A and imposed of penalty of Rs. 10,000/- on the appellants after holding that they are not eligible for the benefit of notification No. 230/86 dt. 3.4.86 for the clearance of certain Industrial Flavour and Fragrance falling under sub-heading 3302.00 which they had claimed to have been manufactured without aid of power but which was held to have been manufactured with the aid of power.

2. It is not disputed that the only use of power is to operate certain laboratory equipments to test both quality of the raw materials received and the end product produced. The equipment in question used for such testing is as follows :-

a) Spectrometer

b) P.H. Meter

c) Vaccum Pump

d) Distillation apparatus

e) Water purifier

f) Pouch sealer

3. Briefly the arguments of the Ld. advocate Shri K.G. Raghavan representing the appellants were as follows:-

i) The wordings of the exemption contained in noti