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1. This Appeal is preferred by the Union of India against the judgment of the Patna High Court allowing the Writ Petition filed by the Respondent herein - Bata India Ltd. The Writ Petition was filed by the Respondent questioning the notice of demand served upon it by the Central Excise Authorities to pay the duty specified therein.

2. The Respondent is a renowned manufacturer of footwear in India. It has got its own factories at various places in the country. According to its case, it was also purchasing the footwear manufactured by certain small manufacturers and selling them under its own brand 'Jalsa' and 'Bata'. Respondents 4 to 7 in the Writ Petition (Respondent Nos. 2 to 5 in this Appeal) are such small manufacturers.

4. According to this notification, footwear produced by or on behalf of a manufacturer in premises wherein not more than 49 workers are working and in which manufacturing process power consumption not exceeding two Horse Power is used, exempt from duty. (The said Respondents 4 to 7 satisfy this requirement). The notification, however, says further that where the foot wear manufactured by such a manufacturer and affixed with the brand or trade name of another manufacturer or is purchased by another manufacturer, "it shall be deemed to have been manufactured by or on behalf of such other manufacturer." Applying this explanation, it appears, the Central Excise Authorities had issued a demand notice to Bata India Ltd. (Respondent herein) treating it as the manufacturer.