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The respondent-company has its factory at Chakala Andheri and is engaged in the manufacture of non-alcoholic beverage bases falling under Tariff Item 68 of Central Excise Tariff. During the course of enquiry, it was found that the company had during the period from Ist March, 1975 to 18th April,1979 manufactured non-alcoholic beverage bases without holding proper Central Excise licence and had cleared the said goods without payment of the duty due thereon and had thereby evaded the duty amounting to PG NO 937 Rs.3,50,963.22. According to the revenue, prima facie it appeared that the respondent had contravened the provisions of Rules 9(1), 53, 173 pp(I), 173 pp(3), ]73 pp(6) and 174 of the Central Excise Rules, 1944 (`Rules' for short) inasmuch as during the period from 1st March, 1975 to 18th April, 1979 the respondent-company had manufactured without valid licences required under Section 6 of the Act read with Rule 174 of the Rules, goods not elsewhere specified and falling under Tariff Item 68 of the First Schedule of the Act, viz., non-alcoholic beverage bases. The respondent- company had further cleared the said goods without filing list of goods manufactured as required by Rule 173 pp(3) of the Rules. The respondent had cleared the said goods without preparing gate passes as required under Rule 173 pp (6) of the Rules. and had further cleared the said goods without maintaining accounts as required under Rule 53 of the Rules. In the circumstances. notices were issued by the relevant officer asking the respondent-company to show cause for recovery of the dues and also for imposition of penalty. When the matter came up for consideration before the Collector, Central Excise, he found that non-alcoholic beverage bases were not themselves food or food products and accordingly did not quality for exemption under Notification No. 55/75 as amended. He accordingly confirmed the demand of central excise duty of Rs.3,50,963.22 under Rule 9(2) read with Rule 10 of the Rules. He also imposed a penalty of Rs.25,000 under Rule 173Q of the Rules. Aggrieved thereby,the respondent-company filed an appeal before the Tribunal and contended that the question of the dutiability of non-alcoholic beverage bases manufactured by the respondent had been settled by the Tribunal in its decision in the case of respondent itself, i.e.,Parle Exports (P)Ltd. v. Collector of Central Excise, Baroda, [1987] 27 ELT 349 which are the subject matter of the connected appeals, i.e. C.A. Nos. 3680-82 of 1987 The Tribunal following its earlier order allowed the appeal and hence the present appeal by the Revenue.

Mr. Sorabjee further drew our attention to the Appendix 17 of Import Policy of 1981-82 which was relied upon by the Tribunal in the second decision, i.e. the Parle Exports (P) Ltd. case which is the subject matter of the connected appeals, i.e. C.A. Nos. 3680-82 of 1987. It was pleaded that it was always understood and treated as a part of the food product. Reliance was also placed on the reports of the Chief Chemist of the Central Excise Regional Laboratory, Baroda to which Mr. Sorabjee drew our attention. The reports dealing inter alia with some items stated as follow: