JUDGMENT - Per P.S. SHAH, J.:---This appeal is directed against the judgment and order dated January 29, 1975. passed by Bhatt, J. allowing the respondents petition under Article 226 of the Constitution of India.

2. The facts which are not in dispute are these :

The respondent No. 2, is the Director and a Shareholder of the respondent No. 1 Company, which owns and runs a Division knowns as Film Centre and inter alia carries on the business of printing and processing cinematograph films. The Company has been paying excise duty on such cinematograph films under item No. 37 of the Central Excise and Salt Act, 1944. Prior to April 1, 1969, item No. 37 in the First Schedule to the said Act read as under.

CINEMATOGRAPH FILMS EXPOSED

Tariff Item Description of Goods Rate of Duty

No. Basic Special Excise.

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37 Cinematograph Films Exposed of a width below 30 mm.

of 30 mm. in width

or higher.

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(1) Newsreels and shorts not 15 paise 10 paise 20 of the basic

exceeding 500

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