Ismail J.

This is an appeal preferred against the order of Gokulakrishnan J. dated 19-8-1978, allowing W.P. No. 7257 of 1975 filed by the respondent herein. The matter lies in a very narrow compass. The respondentherein is a Sugar Mill having been established in or about the year 1956. It went into production of sugar for the first time in 1960. Sugar is a commodity coming under the Central Excises and Salt Act, 1944 (1 of 1944) and excise duty is leviable thereon under item 1 of the First Schedule to the Act. However, Rule 8 of the Central Excise Rules, 1944. enables the Government to exempt excisable Articles from the payment of duty either wholly or in part. In this case the Government of India issued a notification No. 146/74-C.E., dated 12-10-1974, which reads as follows :-

"In exercise of the powers conferred by sub-rule (1) of rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts sugar, described in column (2) of the Table below and falling under sub-items (1) of item No. 1 of the First Schedule to the Central Excises and Salt Act 1944 (1 of 1944) from so much of the duty of excise leviable thereon as is specified in the corresponding entr