Tribunal orders Star Drugs to pay Excise Duty within six weeks, waives penalty pre-deposit. Appeal dismissal risk.

The tribunal directed M/s. Star Drugs and Research Labs Ltd. to deposit the entire Central Excise Duty amount within six weeks, with a waiver of pre-deposit of the penalty amount. Failure to comply would lead to the dismissal of the appeal without further notice. Compliance reporting was set for 25-4-2005.

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Issues: Application for waiver of pre-deposit of Central Excise Duty and penalty amount.

Analysis:
The case involves an application by M/s. Star Drugs and Research Labs Ltd. for the waiver of pre-deposit of Central Excise Duty amounting to Rs. 51,95,144/- and a penalty amount of Rs. 5 lakhs. The duty amount was demanded, and the penalty imposed due to the default in making payment on an installment basis. The applicants argued that the change in the law regarding payment methods should not apply to them. However, the tribunal found no merit in this argument, stating that the facility for installment payment was provided, and it was the duty of the applicants to deposit the duty within the prescribed timeframe. The tribunal directed the applicants to deposit the entire duty amount within six weeks, with a waiver of pre-deposit of the penalty amount. Non-compliance would result in the dismissal of the appeal without further notice. The compliance reporting was scheduled for 25-4-2005.

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