Conditional abatement relief for medicaments: Tribunal orders partial pre-deposit and stays recovery pending appeal

Notification No. 11/2011-C.E. (N.T.) was discussed as granting abatement for specified medicaments, with the last phrase requiring sale under names specified in the First Schedule to the Drugs and Cosmetics Act, 1940 treated by the adjudicating authority as an essential condition. The appellant's challenge to that requirement was considered only prima facie arguable and not substantial. Pending appeal, the Tribunal granted waiver of the assessed liability on condition of partial pre-deposit and stayed further recovery, subject to timely compliance, failing which the full amount would become payable.

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Issues: Whether the last phrase in Notification No. 11/2011-C.E. (N.T.) requiring the medicament to be sold under the names specified in the First Schedule was an essential condition for availing abatement, and whether waiver of the assessed liability and stay of recovery should be granted pending appeal.

Analysis: The order noted that the notification grants abatement to specified medicaments and that the last phrase of the description, which links the medicament to the names specified in the First Schedule to the Drugs and Cosmetics Act, 1940, was treated by the adjudicating authority as an essential condition. The appellant's contention that this requirement was not essential was observed to be only prima facie arguable and not substantial. In the circumstances, the Tribunal granted waiver of the assessed liability against partial pre-deposit and directed that compliance be reported within the stipulated time, failing which the appellant would be liable to remit the entire amount.

Conclusion: The waiver application was allowed conditionally, with partial pre-deposit ordered and stay of further recovery granted pending the appeal.

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