unfair practice of third party manufacturing by drug company to avoid legal obligation -misbranding of drug
From the above table it
is evident that above three products have same active ingredient, same strength, same
specification of the pack and same Retail Price (MRP) but the
excise duty payable on T-BACT OINTMENT, manufactured by Glaxo
Sithkline Pharmaceuticals Limited in its own licenced factory is Rs.5.98 whereas the excise duty payable on BACTROBAN OINTMENT, batch no.-E108 & E 127, manufactured by Emcure Pharmaceuticals Ltd. under third party manufacturing agreement is only Rs.3.20 & Rs.2.02 respectively and there is a remarkable cut in excise duty whereas the MRP remains same.
This unscrupulous gain in excise duty may be one of the motivating factor for the company to adopt this unlawful practice of third party manufacturing which causes great 19
loss to the Govt. Revenue.
(b) LOSS OF GOVERNMENT REVENUE - When they manufacture
drugs in their own licenced factory or get their products manufactured in other licensee‟s factory under loan licences, they have to deposit the prescribed amount under Drugs &
https://www.lawweb.in/2012/08/unfair-practice-of-third-party.html
is evident that above three products have same active ingredient, same strength, same
specification of the pack and same Retail Price (MRP) but the
excise duty payable on T-BACT OINTMENT, manufactured by Glaxo
Sithkline Pharmaceuticals Limited in its own licenced factory is Rs.5.98 whereas the excise duty payable on BACTROBAN OINTMENT, batch no.-E108 & E 127, manufactured by Emcure Pharmaceuticals Ltd. under third party manufacturing agreement is only Rs.3.20 & Rs.2.02 respectively and there is a remarkable cut in excise duty whereas the MRP remains same.
This unscrupulous gain in excise duty may be one of the motivating factor for the company to adopt this unlawful practice of third party manufacturing which causes great 19
loss to the Govt. Revenue.
(b) LOSS OF GOVERNMENT REVENUE - When they manufacture
drugs in their own licenced factory or get their products manufactured in other licensee‟s factory under loan licences, they have to deposit the prescribed amount under Drugs &
https://www.lawweb.in/2012/08/unfair-practice-of-third-party.html
