(1.) THIS appeal is filed against the Order -in -Original No. 5/98, dated 3 -3 -1998 passed by the Commissioner of Central Excise, Hyderabad, in terms of which he has demanded duty of Rs. 36,05,245/ - under Rule 9(2) of the Central Excise Rules, 1944 read with proviso to Section 11A(1) of the Central Excise Act, 1944 and imposed a penalty of Rs. 3,50,000/ - under Rule 209 read with Rules 9(2) and 226 of the Central Excise Rules, 1944. He has also confiscated goods valued at Rs. 14,32,924/ - under Rule 209 of the Central Excise Rules, 1944 with an option to redeem them on payment of a fine of Rs. 1,50,000/ -.
(2.) XXXX
(3.) AFTER hearing both sides and considering the matter it is found :