Per S.L. Peeran : The appellants are aggrieved with the order-in-original dt. 29.12.87 passed by the Collector of Central Excise & Customs, Bhubaneswar. By this order, the ld. Collector has confirmed duty demand of Rs. 17,297.28 on 654.2 FC of Liquid Oxygen Explosives, valued at Rs. 1,15,315.26 manufactured and issued by the assessee to M/s. Orissa Mining Corpn. during the period from 1.3.86 to 31.5.86 under Rule 9 (2) of the Central Excise Rules, 1944 read with Section 11A of the Central Excise & Salt Act, 44. For the contravention of the various provisions of the Central Excise Rules, the Collector has imposed a penalty of Rs. 17,000/- under Rule 173Q of the Central Excise Rules, 1944. The facts of the case are that the assessee had obtained L-4 Licence on 30.5.86 for manufacture of Liquid Oxygen Explosives, though they started manufacturing liquid oxygen explosives from earlier period. During the months of March, April and May'86, they manufactured and cleared 280.4 FC, 216.0 FC and 157.8 FC of liquid oxygen explosives and cleared the same to M/s. Orissa Mining Corpn. The department proceeds on the ground that the liquid oxygen explosives is a manufactured product attractin