JUDGMENT

PATHAK, J. :— This appeal by special leave is directed against the judgment and order dated Aug. 31, 1976 of the High Court, of Punjab and Haryana allowing a group of writ petitions filed by the respondents against the levy of excise duty.

2. The respondent, Messrs. Food Specialities Limited, Moga is a Company registered under the Indian Companies Act. 1956. It entered into a number of agreements with Messrs. Nestles Products (India) Limited, a subsidiary of a foreign company, Messrs. Nestles Holdings Limited, to manufacture for and on behalf of Messrs. Nestles Products (India) Limited (hereinafter referred to as "Nestles") sweetened condensed milk, soluble coffee" baby milk food, milk powders and infant cereal foods for sale in India by Nestles under certain trade-marks in respect of which the latter was registered as the sole registered user in India. The agreements stipulated that the respondent would manufacture the goods and supply them to Nestles in such quantities as Nestles might specify from time to time subject to a prescribed minimum and maximum, and Nestles was obliged to buy the products so manufactured by the respondent. The products were manufactured by the r