Per Shri V.P. Gulati :

This appeal is against the order of the Collector of Central Excise, Bangalore. Under the impugned order the appellants have held to have been evaded duty in respect of the forgings which had been manufactured on job work basis. The appellants are manufacturers of forgings on their own account as also on the account of others out of the raw materials supplied by them. The appellants had got their classification list approved both in respect of the goods manufactured by them out of their own raw materials as well as in respect of the goods manufactured on job work basis. The appellants in respect of the goods manufactured on job work basis claimed benefit of Notification 214/86 and the classification list based on that was approved. The appellants however did not follow the procedure as envisaged under Notification 214/86 as their customers got the work manufactured on job work basis was not operating under the MODVAT Scheme for the benefit of Notification 214/86 had been issued.

2. The learned Consultant for the appellants has pleaded that the appellants were law abiding and to establish their bonafides they paid duty as was demanded and thereafter only co