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5. The allegation against M/s. Mohan Meakins Breweries Ltd., Solan was that they had contravened the provisions of Rules 9 and 174 of the Central Excise Rules, 1944 inasmuch as they had manufactured carbon dioxide gas during the years 1973-74 and 1974-75 without obtaining central excise licence and during 1975-76 (upto January 1976) after obtaining central excise licence and that the entire production of CO, gas was consumed by them without payment of the central excise duty leviable thereon. These allegations were set out in a show cause notice dated 5-5-1976 issued by the Supdt. of Central Excise, Chandigarh Range in which the quantity of carbon dioxide was mentioned as 12,862.84 Kgs. and the duly leviable was mentioned as Rs. 15,435.41 (Rs. 12,862.84 basic excise duty plus Rs. 2,572.57 as auxiliary duty). M/s. Mohan Meakins were called upon to show cause to the Assistant Collector of Central Excise. Chandigarh as to why the aforesaid duty should not be demanded from them and why a penalty under Rule 173-Q should not be imposed on them. After nearly A\ years, the Supdt. of Central Excise, Simla issued a corrigendum dated 29-9-1980 to the show cause notice wherein the quantity of carbon dioxide gas was amended to the figure 3,58,398.67 Kgs. and the duty amount was amended to the figure Rs. 3,58,398.67. Further, the assessee was called upon to show cause to the Collector of Central Excise, Chandigarh. The Collector, after holding adjudication proceedings, by an order dated 4-12-1980 rejected the assessee's contention that the subject CO, was not compressed CO, gas as known to the market compressed it a pressure ranging between 1000 to 1800 pounds per sq. inch and filled incylin-lers. He also rejected the contention that since the gas was not removed out of he factory, no liability attached on the assessee for payment of excise duty under "Central Excise Rules 9 and 49. He further rejected the contention that the show cause notice was hit by limitation and that the corrigendum was time-barred. As regards the quantity of C02 gas on which duty was to be paid, the Collector gave certain allowances on account of factors such as escape of gas into the atmosphere, etc. and scaled down the figure to 2,93,277.575 Kgs. He ordered that M/s. Mohan Meakins should pay central excise duty at the appropriate rates on the aforesaid quantity of CO2 gas. He also levied a penalty of Rs. 4,50,000 on the assessee for contravention of the provisions of the Central Excise Rules. The assessee filed an appeal against this order which we are now disposing of as an appeal filed before us.