JUDGMENT

BHARUCHA, J.- Leave granted.

2. These are appeals filed by the State of Uttar Pradesh against judgments and orders of the Allahabad High Court dated 9-3-1979 and 11-10-1979, and orders that followed the same. The High Court allowed writ petitions filed by the respondents, who are manufacturers of Indian-made foreign liquor, and quashed the orders impugned demanding excise duty from them.

3. The High Court in the judgment dated 11-10-1979, categorised the demands into four groups. In Group A the demands for excise duty were on the wastage of Indian-made foreign liquor (IMFL) which was exported outside the State of Uttar Pradesh. Group B related to demands made for excise duty on wastage, during transportation in containers, of high strength spirit, of 80 to 85%, from distillery to warehouse. Group C related to the demand of excise duty on obscuration. Group D related to excise duty sought to be levied on pipeline wastage. The judgment of the High Court dated 9-3-1979, related only to duty on obscuration (i.e., Group C).

4. It is convenient to state immediately that the issue relating to Group A, that is, the demands for excise duty on the wastage of IMFL exported outside the S