UNION OF INDIA vs PALIWAL ELECTRICALS

The Supreme Court upheld the Allahabad High Court's decision to strike down Para-7 of Exemption Notification No. 223 of 1987, citing a violation of Article 14 of the Constitution of India. The Court emphasized that Rule 8 of the Central Excise Rules allows the Central Government to exempt excisable goods from duty, aiming to support small-scale industries by enabling them to compete against well-known brand names. The judgment reinforces the principle that exemptions should facilitate market entry for small manufacturers, thereby promoting economic equity.