The question that falls for consideration in this writ petition is whether the Brakes India Ltd., the petitioner herein, are bound to take out a licence under the Central Excises and Salt Act, 1944, for marketing brake linings under the name of B.I. Girling Kit Linings and whether they are bound to pay central excise duty on the said brake linings.

2.The petitioners are the manufacturers of brake equipment for automotive and non-automotive units comprising master cylinder, wheel cylinder, brake washers, brake hoses etc. inclusive of foundation brakes. They supply brake assemblies to vehicle manufacturers, viz., Ashok Leyland, Premier Automobiles' Telco, Hindustan Motors, Heavy Vehicles factory belonging to the Defence Establishment of the Government of India etc. for fitment as original equipment. For these purposes, they obtain blank brake linings which form part of the components of the brake assembly under Chapter X procedure of the Central Excises and Salt Act from the manufacturers of brake linings without payment of central excise duty. So far as this is concerned, there is no dispute in this writ petition.

3.Apart from the above, the petitioners obtain brake lining