RAMANUJAM, J

This case involves the scope and ambit of tariff item 14-E of the First Schedule to Central Excises and Salt Act, 1944 and rules framed thereunder. The petitioner is a manufacturer of pharmaceutical products at Nanganallur, Madras. Some of the pharmaceutical products manufactured by it are liable to excise duty and others are not excisable. For the manufacture of such of those pharmaceutical products which are excisable, the petitioner has taken out a licence under the said Act. The items that attract the excise duty are governed by the tariff item 14-E of the First Schedule to the Central Excise Act. As required by the licence, the petitioner furnished the lables attached to the products manufactured in its factory, both excisable and non-excisable, along with a proforma in triplicate on 11-12-1967. It also undertook to supply to the Department in advance the labels of new preparations excisable or non-excisable, manufactured for sale in future. On receipt of the said labels, the pharmaceutical products manufactured by the petitioner were classified as excisable and non-excisable.

2.As per the said classification, the following three preparations have been h