(Published in Part II, Section 3, Sub-section (ii) of the Gazette of India, Extraordinary)
Ministry of Chemicals and Fertilizers
Department of Pharmaceuticals
S.O. 776(E)- The Government of India in the Ministry of Finance (Department of Revenue), vide Notification No. 14/2015 and 15/2015 –Central Excise dated 1st March, 2015 has exempted the drugs and pharmaceuticals from the whole of the Education Cess and Secondary & Higher Education Cess, resulting into reduction of Excise Duty from 6.18% to 6%.
2. The above reduction in the MRP (inclusive of Excise duty and all taxes) shall take effect immediately in terms of above mentioned two notifications both dated the 1st March, 2015 of the Ministry of Finance, Department of Revenue.
3. Accordingly , therefore, in exercise of the powers, conferred by paragraph 4, 5, 6, 10, 11, 14, 16 and 19 of the Drugs (Prices Control) Order, 2013, read with S.O. No. 1394(E) dated the 30th May, 2013 issued by the Government of India in the Ministry of Chemicals and Fertilizers, the National Pharmaceutical Pricing Authority hereby directs all the manufacturers to ensure to revise their Maximum Retail price (MRP) (inclusive of excise duty and all taxes) of all formulation packs downward, pursuant to aforesaid notifications dated 1st March, 2015.
4. However, where no excise duty has been actually paid/payable to the Government and no excise duty is chargeable in the MRP of such formulation packs, the reduction in prices of those formulation packs may not apply to the categories of concerned formulation packs.
PN/153/21/2015/F F. No. 8(21)/2015/D.P./NPPA-Div.-II