UNION OF INDIA Vs. BATA INDIA LIMITED

JUDGEMENT

(1.) This appeal is preferred by the Union of India against the judgment of the Patna High Court allowing the Writ Petition filed by the respondent herein Bata India Ltd. The Writ Petition was filed by the respondent questioning the notice of demand served upon it by the Central Excise Authorities to pay the duty specified therein.

(2.) The respondent is a renowned manufacturer of footwear in India. It has got its own factories at various places in the country. According to its case, it was also purchasing the footwear manufactured by certain small manufacturers and selling them under its own brand 'Jalsa' and 'Bata'. Respondents 4 to 7 in the writ petition (respondent Nos. 2 to 5 in this appeal) are such small manufacturers.

(3.) Under Rule 8 of the Central Excise Rules, the Central Government issued a Notification being Notification No.93/67 dated. 26th May, 1967 exempting certain small manufacturers of footwear from the payment of duty. The said Notification was amended by Notification No. 103/ 76 dated 16th March, 1976. These notifications did not affect the respondent. However, on 9th May, 1977, the Central Government issued another Notification (No. 88/77) in supersession of the earlier notifications, which reads as follows :