Brishketu Saran Sinha, J.

Messrs Shri Madhav Mills Private Limited (hereinafter referred to as 'the Mills') are engaged in the manufacture of Maida, which is item no. IF of the First Schedule attached to the Central Excise and Salt Act, 1944 (hereinafter referred to as 'the Excise Act') and bolts, nuts and screws which are item no. 52 of the laid Schedule as also certain articles which are included under item no. 68 of the Schedule. The details of the other items excluding those under items I-F and 58 are given in annexure 4 appended to the writ application.

2. By a notification issued by the Government of India dated 10th August, 1971 item no. I-F, of the First Schedule, to the Excise Act, has been exempted from payment of duty under sub-rule (1) of rule 8 of the Central Excise Rules, 1944, (hereinafter referred to as 'the rules'), copy of which is Annexure 1. Thereafter by a notification dated 18th June, 1977, under rule 8(1) of the Rules (copy of which is annexure 2) the Government of India exempted goods falling under item 68 of the First Schedule, if to be utilised for home consumption and if the total value of all excisable goods in the proceeding financial year does