This category of Medicament manufacturers have been left high & dry!
A Netizen sent us this mail.
Through this portal, I would like to make a humble plea to the Finance Minister.
In respect of Medicaments, the Central Excise duty has been halved to 8% ad valorem & the industry is going gaga.
But, Sir, you have inadvertently missed out one more category of medicaments manufacturers & who are out of the purview of Central Excise – they are medicaments containing alcohol, opium, Indian hemp & other narcotic drugs.
As per chapter note 5 to Chapter 30 of the Central Excise Tariff, these goods are covered by the Medicinal & Toilet Preparations (Excise Duties) Act, 1955.
Pursuant to the Union Budget 2003-04, when the excise duty rates were reduced from 20% Ad Val to 16% Ad Val, a notification no. 2/2003-M&TP dated 01.03.2003 was also issued simultaneously to prescribe a 16% adv. duty in respect of the Medicinal preparations (excluded from coverage under Chapter 30 of the CETA’85) containing alcohol, opium etc.
However, this year’s Union Budget has not seen issuance of a similar notification bringing down the rate of duty under the M & TP Act to 8% leading to a discriminatory policy.
I hope that needful will be done in the quickest possible time.
Budget obviously has many loose ends.