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1. The short question that arises in these Writ Petitions is : whether mild steel rounds manufactured out of mild steel ingots, on which excise duty has been paid, are further liable to duty under Item 26AA of the First Schedule to the Central Excises and Salt Act, 1944.

2. The material facts giving rise to the question are these : The petitioners, Messis. Andhra Re rolling Works, are a firm registered under the Indian Partnership Act, 1932. They carry on business of manufacturing mild steel rounds and flats (hereinafter referred to as 'the said products') at their factory at Moosapet. The manufacture of the said products is made from duty paid steel ingots supplied by other manufacturers. On 22/23rd September, 1969, the petitioners addressed a letter to the Assistant Collector of Central Excise, Hyderabad, stating that they would like to purchase duty paid steel ingots and enquiring whether they were entitled for exemption from duty on the products made out of duty paid steel ingots. Thereafter, the petitioners purchased between 17-10-1969 and 31-12-1979 226.56 tons of duty paid steel ingots supplied by other manufacturers. According to them, the said steel ingots were broken into pieces and entered in the RG 4 register as scrap. Out of the said scrap ingots, the petitioners re-rolled 191.98 tons of mild steel rods. Thereafter, the said products were cleared from the factory on the regular gate passes furnished by the petitioners-firm to the excise authorities. The petitioners claim that the said products are exempted from payment of duty under Notification No. 206/63, dated 30-11-1953 issued by the Government of India as amended by Notification No. 123/65. dated 14th August, 1965 under Rule 8 of the Central Excise Rules, 1944 (hereinafter referred to as "the said Rules"). Under the said Notification the product manufactured from duty paid cut or broken steel ingots are exempted from payment of duty.