GOVT. OF INDIA, REPRESENTED BY SECRETARY,MINISTRY OF FINANC vs DHANALAKSHMI PAPER AND BOARD MILLSTIRUCHIRUPALLI

The Supreme Court held that Clause (a) of Proviso (3) of the Notification dated March 1, 1964, under the Central Excises and Salt Act, 1944, was ultra vires as it arbitrarily distinguished between assesses based on a date that bore no rational relationship to the object of the notification. The Court emphasized that a rule differentiating between past and present cannot be deemed arbitrary if it serves a legitimate purpose. The appeal by the Revenue was dismissed, affirming the High Court's decision that the benefit of the concessional rate should apply to all assesses, including the respondent.