1 M/s Colfax Laboratories (India) Ltd. and State of Goa have preferred these appeals by special leave against the judgment and order dated 1.4.1999 of High Court of Bombay (Goa Bench), by which the writ petition preferred by M/s Colfax Laboratories (India) Ltd. was partly allowed.

2 M/s Colfax Laboratories (India) Ltd. (for short 'Colfax') was granted a licence to manufacture various types of cosmetics including after shave lotion under the trade mark 'Old Spice' on 15.4.1968 under the Drugs and Cosmetics Act. A licence under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (for short 'the Act') in form L - 1 for manufacture of 'Old Spice' after shave lotion and cologne for men as toilet preparations was granted on 1.4.1969. Till the end of the year 1984 excise duty on 'Old Spice' after shave lotion (hereinafter called as 'ASL') was paid on the basis that it was a toilet preparation. On 14.1.1985 Colfax moved an application before the Commissioner of Excise, Government of Goa for reclassification of Old Spice ASL as a 'medicinal preparation' falling under Tariff Item No. 1(i)(b) of the Schedule to the Act for the purpose of levy of excise duty. The Excise Commissioner