ORDER

Per P.K. Kapoor - This is an appeal against the order dated 25.11.85 passed by the Additional Collector of Central Excise, New Delhi. Briefly stated the facts of the case are that on a visit to the appellant's factory on 12.11.84 the Central Excise Officers found that they were engaged in the slitting of Jumbo Audio Magnetic Tape received from other parties on job work basis. They seized 606 spools of such slit Audio Magnetic Tapes of width not exceeding 6.5mm valued at rs. 12,020/-. After further investigation the appellants were served with a show cause notice dated 18.2.85 requiring them to show cause why Central Excise duty amounting to Rs. 39,375/- should not be recovered from them on Slit Audio Magnetic Tapes valued at Rs. 1,50,000A falling under item 59( 1) of Central Excise Tariff and why penalty should not be imposed on them. The appellants were also asked to show cause why 606 pools of Audio Magnetic Tapes of width not exceeding 6.5 mm seized from their factory should not be confiscated. Thereafter, by the impugned order the Additional Collector held that by Slitting Jumbo Audio Magnetic Tapes rolls falling under tariff item 59(5) into Magnetic Tapes not exceeding 6