Per S.L. Peeran:

The appellants are aggrieved with the order-in-original dt. 5.12.91 passed by Collector of Central Excise, Bangalore denying the benefit of the exemption notification No. 175/86 dt. 1.3.86 and has confirmed the differential CED amounting to Rs. 18,78,856.18 on the goods cleared during the period 1987-88 to 1989-90 under Rule 9 (2) of Central Excise Rules, 1944 read with the proviso of Section 11A of Central Excises & Salt Act, 1944. A penalty of Rs. 2 lakhs has also been imposed on the appellants. The facts of the case are that the show-cause notice dt. 20.8.91 was issued to the appellants. It is alleged therein that the appellants are manufacturers of Pneumatic valves, Cylinders, Base plate, manifold and fillings falling under Chapter 84 of Central Excise Tariff Act, 1985 and they had contravened rules 9(1), 52A, 53 read with Rule 226, 173B, 173G and 174 of Central Excise Rules, 1944, and further committed the offences specified in Rule 173Q (1) (a), 173Q (1) (c) and 173Q (l) (d) ibid, in as much as, they had suppressed the fact of manufacture of the said goods with brand name "Festo" which is owned by their collaborators M/s. FESTO KG (Festo Pneumatic), Germa