1. These writ applications raise a common question about the validity of R.38 (1) of the Medicinal and Toilet Preparations (Excise Duties) Rules, 1956. This rule reads as follows:

"38 (1). The State Government may, from time to time, fix the percentage of wastage in the production of a particular medicinal or toilet preparation. Any wastage that exceeds the allowable limit and is not properly accounted for shall be charged with the duty together with such penalty not exceeding the duty leviable thereon as the Excise Commissioner may deem fit. If the alcohol in strength of a preparation is found by the Chemical Examiner to exceed the highest allowable limit by more than 3 proof degrees or to be below the lowest allowable limits its issue from the bonded manufactory, shall be withheld.".

The petitioner seeks a declaration that R.38 (1) of the above rules is ultra vires the powers of the rule-making authority. The rule-making authority is the Central Government and power has been conferred by S.19 of the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 to frame Rules. The Section is in these terms:

"19. (1) The Central Government may, by notification in the Officia