JUDGMENT

SINGH, J. :— These appeals are directed against the judgment and order of a Division Bench of the High Court of Madras dt. 2-8-1974, quashing the notices issued by the Deputy Commercial Tax Officer, Madras.

2. The respondents manufacture various medicinal preparations and in that process they use tincture containing alcohol. On the enforcement of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (hereinafter referred to as the Act) the respondents became liable to pay duty in accordance with Section 3 of the Act read with Schedule to the Act. They further became liable to obtain licence, but they neither paid duty nor obtained licence. The Commercial Tax Officer issued notices to the respondents in exercise of his powers under Rule 12 of the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956 directing them to pay duty on all medicinal preparations manufactured by them after 1-6-1961. The notices were in the shape of notice of demand requiring the respondents to pay the duty which they had failed to pay in accordance with the Act and the Rules on the use of tincture in manufacturing medicinal preparations. The respondents filed writ petitions under A