ORDER

1. These two appeals are directed against the common judgment and order dated 25-2-2002, passed by the High Court of Gujarat at Ahmedabad in Mangal Textile Mills (P) Ltd. v. Union of India1. By the impugned order, the High Court has set aside the two orders dated 16-10-2001 and 25-10-2001 passed by the Commissioner, Central Excise and Customs, Ahmedabad, denying to Respondent 1 Company (hereinafter referred to as "the assessee") the benefit of special procedure for payment of Central excise viz. the compounded levy scheme, under Rule 96-ZNA of the Central Excise Rules, 1944 ("the Rules", for short). The issue involved in both the appeals being identical, these are being disposed of by this common order.

2. To appreciate the controversy, a brief reference to the background facts would be necessary. These are: vide Notification No. 16/2001-CE (NT) dated 30-4-2001 a new Section E-XA, titled as "Processed textile fabrics", was inserted in the Rules, containing Rules 96-ZNA to 96-ZND, providing for special procedure for payment of excise duty by an independent textile processor covered under the scheme, subject to the conditions and limitations laid therein. One of the conditions,