Inadequate time granted by Department of Chemicals to SSIs for providing detailed information for fixing a separate abatement rate has caused a lot of disappointment and apprehension amongst these units. Many of the units could not furnish the data on account of the tight deadline.

Though the department has asked the SSIs to submit information in a consolidated format as per a questionnaire, the units feel that the data to be furnished is quite exhaustive and majority of units find did not get enough time to submit the data within the period. The Department issued the letter on March 20 with instruction to furnish the data by March 28, 2007.

According to IDMA, its SSI members have not furnished the data to Department as the Association received the letter only a day before the last date. "This move is purposefully to discourage the enthusiasm of small scale units to get a special higher abatement rate. They sought exhaustive data with very less time to submit the same doesn't seems to be very transparent in nature," said S R Vaidya, Co-chairman, SSI committee, IDMA told Pharmabiz.

Though the Association has requested the department to extend the deadline for furnishing the report upto April 16, 2007, the authority has neither responded to the request, nor does any new communication was received, he added.

The department has sought the comprehensive information including a brief history of the unit, production capacity, details of excise, sales tax or Value Added Tax and other miscellaneous taxes levied for the last three financial year and the total quantum of trade margins. According to the letter from the department, the information must be based on the audited annual accounts of the units and may be restricted to units having major of market share giving due weightage to generic and branded formulations under price control.

The Confederation of Indian Pharmaceutical Industry also sought more time from the department for submitting a comprehensive data. "A large number of SSI units may not be able to submit such a detailed data in such short time. We have requested the government to review the questionnaire and to extend the date for submission of data," T S Jaishanker, chairman, CIPI told Pharmabiz.

He said that, the nature of the questionnaire and inadequate time granted to submit the data have disappointed the SSI units. The confederation has sent a letter to the concerned department requesting dilution of data demanded through the questionnaire and for more time to furnish the data.

The sources fear that the delay in submission and furnishing inadequate data may lead to the Department taking a negative action against the SSIs. The industry associations have been demanding a higher abatement rate from 55 to 60 per cent on MRP based excise duty for the SSIs .

The questionnaire, with 14 queries requests to submit the reasons and justifications for seeking abatement sought and its justification with detailed computations for the same for bulk drugs and pharmaceutical. The questionnaire seeking information for fixing special abatement rate is a result of pressure implied by various pharma associations for the relief of SSIs, according to the letter from Department of Chemicals and Petrochemicals.