JUDGMENT

K. N. SAIKIA, J. :— This appeal by Special Leave is from the judgment and Order of the High Court of Judicature at Madras, dated 19th July, 1972 in Writ Petition No. 1864 of 1967, allowing the petition and quashing the demand made by the appellant under R. 10-A of the Central Excise Rules, hereinafter referred to as the Rules, payable by the respondent under the Central Excises and Salt Act, 1944, hereinafter referred to as the Act.

2. M/s. Ramakrishnan Kulwant Rai, the respondent firm, owned the Steel Rolling Mill, located at No. 4-B, 4-C, North Railway Terminus Road, Rayapuram, Madras-13. The said Mill was leased out to a partnership firm known as M/s. Steel Industries. After termination of the lease the respondent firm took back possession of the said Mill on 1-8-1962 and informed the Central Excise Authorities about this by their letter dated 16-11-1962 and resumed manufacture of Steel from scraps and was advised to take out a licence for which it applied on 30-11-1962. Though the respondent firm had ultimately sold away the Rolling Mill on 8-4-1963, the Superintendent of Central Excise, by his letter dated 13-10-1965 demanded a sum of Rs. 31,018.20p as excise duty. On