JUDGMENT

PATHAK, J.:— These appeals by special leave are directed against the judgment and orders of the Gujarat High Court allowing two writ petitions preferred by the respondent challenging the levy of excise duty. As they raise identical questions of law for consideration they are disposed by a common Judgment.

2. The respondent is a company limited by shares. Of the total share capital, 65 per cent is owned by Atul Products Limited, 30 per cent belongs to a foreign company known as Ciba Geigy of Baste Switzerland and the remaining 5 per cent to Ciba Geigy, of India Limited. the respondent Cibatul Limited (referered to shortly as the "seller") entered into an agreement with Ciba Geigy of India Limited (the "buyer") on March 24,1971 under which certain specified products, which included U.F. Resins and M. F. Resins, were to be manufactured by the seller in accordance with a manufacturing programme drawn up jointly by the seller and the buyer. The resins were to be manufactured in accordance with the restrictions and specifications constituting the buyers standard, and they were supplied at prices agreed upon between the seller and the buyer from time to time. The buyer was entitle