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Issues involved:
1. Interpretation of Notification No. 6/94-C.E. regarding the benefit of exemption for bulk drugs manufactured and cleared during a specific period. 2. Validity of denying the benefit of concessional rate of duty post-repeal of Drugs (Prices Control) Order, 1987. 3. Applicability of penalty under Rule 173Q read with Section 11AC. 4. Bar of limitation for invoking the extended period of five years for duty demand. 5. Conflict in decisions of different benches of the Tribunal on the availability of the benefit of Notification No. 6/94-C.E. for bulk drugs. Detailed Analysis: 1. The main issue in this case is the interpretation of Notification No. 6/94-C.E. to determine if the benefit of exemption was available to bulk drugs manufactured and cleared by the appellants during a specific period. The contention arose due to the repeal of the Drugs (Prices Control) Order, 1987 and subsequent amendments to the notification. The department argued that the benefit could not be extended post-repeal, leading to a demand for differential duty and imposition of penalties by the jurisdictional Commissioner. 2. The validity of denying the concessional rate of duty after the repeal of the Drugs (Prices Control) Order, 1987 was a significant point of contention. The department's stance was that the benefit under Notification No. 6/94-C.E. was no longer applicable post-repeal, leading to the denial of the benefit to the appellants' bulk drugs. This issue was crucial in determining the liability of the appellants for the duty demand and penalties imposed. 3. The question of the applicability of penalty under Rule 173Q read with Section 11AC was raised during the proceedings. The appellants contested the imposition of penalties, arguing against their liability under the given rules and provisions. This issue required a thorough examination of the legal provisions and the circumstances of the case to determine the validity of the penalties imposed. 4. Another issue raised was the bar of limitation for invoking the extended period of five years for the duty demand. The appellants argued that the demand, alleged to have been short-paid during a specific period, was barred by limitation in the absence of a valid reason for invoking the extended period. This issue required a detailed analysis of the timeline of events and the legal provisions governing the limitation period for duty demands. 5. A conflict in decisions of different benches of the Tribunal on the availability of the benefit of Notification No. 6/94-C.E. for bulk drugs added complexity to the case. The conflicting decisions of the South Regional Bench (Bangalore) and the Delhi Bench of the Tribunal created uncertainty regarding the interpretation and application of the notification. This conflict necessitated a reference to a Larger Bench for a comprehensive consideration of the issue to resolve the conflicting decisions and provide clarity on the matter. This detailed analysis covers the key issues involved in the legal judgment, highlighting the complexities and legal interpretations surrounding the interpretation of Notification No. 6/94-C.E. and its implications on the duty demands, penalties, and limitation periods in the case.
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