The Confederation of Indian Pharmaceutical Industry may move court against the Union government over its indecision in diluting Schedule M norms for the small scale sector and continuing discriminatory excise policy in hill states of Himachal, Uttaranchal and Jammu & Kashmir.

The confederation is planning to move legally against the implementation of revised Schedule M in its present form. The litigation is considered to be in lines with the earlier litigation by the regional petitioners at Kolkata High Court. Plans are to move the legal procedure in more than one state, simultaneously, to get a firm hold on the issue, according to informed sources.

The action in case of its demand for abolition of excise free benefits enjoyed by hill states will also be moved through one or two high courts. In its executive committee meeting and annual general meeting to be held at New Delhi by this month end, the CIPI will discuss the issue with all its members, for a comprehensive action.

"We will be going for legal opinion once the matter being discussed amongst our members. However, we will not push the idea unless there is a valid legal foothold is present in the issues," T S Jaishankar, chairman, CIPI told Pharmabiz. He also added that the meeting will seek options for the SSIs to sustain through the adversities in the present situation, and will make its agenda for action to carry out in the next one year.

It is to be noted that the CIPI has been demanding for dilution of a few clauses in the revised Schedule M and has pleaded with the Parliamentary Committee on Subordinate Legislation to recommend adequate financial support from the central government to provide a relief to the majority of SSI units in the country.

The confederation also sent updated reports to the central government with facts and figures on the loss incurred in the central revenue through allowing tax benefits to restricted number of states in the country. It has plans to pursue the implementation of Rangarajan committee report, which advocated for specific duty, for reduction of centralised excise duty on drugs from 16 percent to 8 percent, according to Jaishankar.