The small-scale drug manufacturers are still exploring the option of legal recourse to escape the aftereffects of Revised Schedule M and MRP based excise duty notifications.
The SSIs are contemplating to file cases in respective High Courts citing a Calcutta High Court ruling on Schedule M. As reported earlier, the Calcutta High Court had granted a stay on implementing clauses related to large volume parenterals (LVPs) as part of the Revised Schedule M, based on a petition from an association of LVP manufacturers in West Bengal.
According to T S Jaishankar, chairman, Confederation of Indian Pharmaceutical Industries (CIPI-ssi) - the umbrella organisation of state level SSI pharmaceutical manufacturers associations, a recent CIPI meeting discussed the issue in detail and directed the state level associations to approach their respective High Courts. He said as per the advice from a section of lawyers, the chances of obtaining a stay on Schedule M was bright, based on the Calcutta High Court order. It may be noted the Federation of South Indian Pharmaceutical Manufacturers Association (FOSIPMA) had decided not to pursue its plans of filing a case in the Madras High Court as the lawyers the association consulted were not confident of obtaining a favourable decision.
He said the association has also directed the state associations to pursue similar strategy in the case of MRP based excise issue. CIPI hopes that a series of cases with various High Courts would help at least to make the government re-look its decision. It is rumored already the government is contemplating to bring in a mechanism like disallowing contract-manufacturing activities in Excise Free Zones with a view to arrest the trend of large-scale migration of units from various states to Himachal, Uttaranchal and JK, noted Jaishankar.
As Pharmabiz reported earlier, the Gujarat High Court had admitted a writ petition filed by the Indian Drug Manufacturers Association (IDMA) –Gujarat State Board challenging the MRP based excise notification, citing the government notification violated Article 14, 301, 303 and 19-1(g) of the Indian Constitution. A double bench of Madhya Pradesh High Court also had admitted a writ petition filed by the Madhya Pradesh Small Scale Drug Manufacturers Association challenging the MRP based excise duty notification as a constitutional violation.
Jaishankar said CIPI, not more than a two-year-old association, would strengthen its operations in near future. Soon various committees would be formed to pursue various issues and ministries. A fund raising committee would also ensure adequate funds are raised for conducting various activities.