In a big relief to the pharmaceutical companies and the retailers, the Department of Pharmaceutical (DoP) has given 30 days extension to implement the new prices of essential drugs for which the revised prices were announced in batches from July 14, 2013 onwards.

The new prices, which were to be implemented by July 29, will be now in effect only by August 28, thus setting the boiling issue which was aggravated after several pharmaceutical firms and associations approached the court for relaxation.

“The DoP has extended the period of exemption in respect of ceiling price notification dated 14.06.2013 issued by the National Pharmaceutical Pricing Authority (NPPA) for a period of 30 days from 29.07.2013. Similarly, in respect of ceiling price notifications dated 21.06.2013, 28.06.2013 and 05.07.2013 issued by the NPPA, the period of validity of exemption is extended for a period not exceeding 30 days from the date when the period of 45 days will expire as granted by the Department of Revenue,” according to an official release.

“The aforesaid extension of exemption shall be applicable only for the purpose of exemption from the provisions of Central Excise Act regarding whole of the duty of excise leviable in case of re-printing, re-labelling, re-packing or stickering, in a premises which is not registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder,” it said.

"In a circular issued on Thursday, the Department of Pharmaceutical exempted the scheduled formulations as defined under the Drugs Price Control Order (DPCO), 2013 published vide S.O. 1221 (E) dated the 15th May, 2013, falling under Chapter 30 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) and which are subjected to re-printing, re-labelling, re-packing or stickering, in a premises which is not registered under the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, in pursuance of the provisions contained in the said Drugs Price Control Order (DPCO), 2013 from whole of the duty of excise leviable thereon under the said Central Excise Act subject to the conditions as stipulated therein,” the release added.