JUDGMENT

SHARMA, J. :— This appeal arises out of a writ application allowed by the Madras High Court striking down Cl. (a) of the Proviso (3) of the Notification dated the Ist March, 1964 issued by the Union of India in the Ministry of Finance, under R. 8(l) of the Central Excise Rules, 1944 and granting consequential relief. The aforesaid notification granted certain exemption from payment of excise duty, but the benefit was denied to the writ petitioner, respondent before this Court, in view of the impugned clause.

2. The respondent assessee, a business concern functioning under the name of M/s. Dhanalakshmi Paper and Board Mills, decided to set up a factory for the manufacture of paper and paper boards and allied products, and obtained a lease of certain premises in June 1963 and put up a suitable structure for the factory by August 1963. The necessary machineries for running the factor), however, were received in April 1964 and application for licence therefor was filed on 27-4-1964. The licence was granted on 6-5-1964 and production in the factory started the next day, i.e., 7-5-1964.

3. The respondent claimed that the duty in respect of the paper boards manufactured in the fact