JUDGMENT

H.L. Dattu, J. —

1) The issues that arise for our consideration and decision in this appeal are :-

i) Whether the Central Govt. was justified in issuing a demand based on Drug Prices fixed on 02.01.1989, instead of drug prices fixed on 20.11.1986.

ii) Whether the Central Government was justified in directing Glaxo India Ltd. (hereinafter referred to as, “Respondent- Company”) to deposit an amount of `71.21 crores in the Drug Prices Equalization Account (in short, “DPEA”).

iii) What is the effect of ‘supersession’ of a notification and when such supersession is made, would it have the prospective or retrospective effect.

Factual Background

2) The Respondent-Company is engaged in manufacture and sale of three bulk drugs, namely, Betamethasone Alcohol (B.A.), Betamethasone 17 valerate (B.V.) and Betamethasone di Sodium Phosphate (B.P.), and various formulations based on these bulk drugs. They were sold at the price that was declared by the Respondent-Company under the Drugs (Price Control) Order, 1970 [in short, “DPCO 1970”]. The Central Government promulgated the Drug (Price Control) Order, 1979, [in short, “DPCO 1979”], replacing DPCO 1970 which included the above mentioned