( 1 ) INDIA Foils Ltd. the petitioner No. 1 (hereinafter referred to as the company carries on business in the manufacture and sale of aluminium foils of diverse varieties including foils known as tea chest linings. These foils are manufactured by the company at its factory at Kamarhati in the District of 24-Parganas.

( 2 ) ACCORDING to the Writ petition, tea chest lining foils are bare foils which are not backed by any reinforcing material; after being manufactured these foils are interleaved with duty paid tissue paper to ensure that the edges of the foils do not get stuck in the process of being cut to shape. Neither is the tissue paper used for the purpose of interleaving glued or pasted to the foils with any adhesive.

( 3 ) WHEN the Excise authorities demanded payment of excise duty on the tissue paper used for interleaving the aluminium foils for tea chest linings, the company drew the attention of the said authorities to a Notification bearing No. 155/72, dated 15-6-72, issued by the Central Government in exercise of its powers conferred by Rule 8 (1) of the Central Excise Rules whereby; Central Excise duty on foils of the description 'merely cut to shap