Date: 2014-10-28Category: Extra OrdinaryState: Union GovernmentCountry: India
The NPPA, hereby fixes revises the prices as specified in column (5) of the table hereto annexed as the retail price revised retail price, exclusive of Excise Duty, Sales Taxes VAT and Local Taxes, if any, in relation to each of the formulation specified in the corresponding entry in column (2) of the said table with the pack size specified in the corresponding entries in column (3) thereof.
Executive Summary:
This order from the National Pharmaceutical Pricing Authority (NPPA) revises the retail prices of Dettol Antiseptic Liquid formulations manufactured/imported by Reckitt Benckiser India Ltd., following a High Court order and subsequent review. It supersedes order S.O. 559E, dated 14.03.2011. The revised prices, detailed in the table, are effective within 15 days of the order date (October 28, 2014).
Key Points / Main Content:
Revised Pricing and Applicability:
* NPPA fixes/revises retail prices for specified Dettol Antiseptic Liquid formulations, as listed in the table (column 5).
* Prices are exclusive of Excise Duty, Sales Tax/VAT, and Local Taxes.
* Prices are based on specified pack sizes (column 3) and apply to products manufactured/imported by Reckitt Benckiser India Ltd (column 2).
Conditions and Exemptions:
* Companies cannot claim exemptions unless specifically permitted by the Government/NPPA.
* Taxes can be added only if actually paid or payable to the government on the listed price.
* Listed retail prices apply regardless of packing material, drug delivery systems, or special features, unless specific price approvals are obtained from NPPA.
Compliance and Enforcement:
* Manufacturers/marketers must implement the prices.
* Non-compliance within 15 days of notification may result in penalties under the Essential Commodities Act, 1955, including deposit of overcharged amounts with interest.
Additional Requirements:
* Prior approval from the Competent Authority is required for any change in formulation composition, with written intimation to NPPA.
* Price lists must be issued as required under subparagraph 3 of paragraph 14 of the Drugs Prices Control Order, 1995.
Impact Analysis:
Manufacturer/Marketing Company (Reckitt Benckiser India Ltd.):
* Impact: Must adhere to revised retail prices for Dettol formulations, potential impact on profit margins, and need for compliance with regulations regarding formulation changes.
* Action Required: Implement revised prices within 15 days, obtain prior approval for formulation changes, issue price lists, and ensure compliance with all conditions specified in the order.
Consumers:
* Impact: Change in the retail price of the specified Dettol Antiseptic Liquid products.
* Action Required: None.
Government/NPPA:
* Impact: Ensuring compliance with pricing regulations and monitoring the implementation of the order.
* Action Required: Monitor compliance and take action against non-compliant entities.
Key Entities Referenced
National Pharmaceutical Pricing Authority: A government regulatory agency in India that fixes and revises prices of pharmaceutical products; also referred to as NPPA.
Ministry of Chemicals and Fertilizers: A ministry in the Government of India, the parent ministry of the Department of Pharmaceuticals and the NPPA.
Department of Pharmaceuticals: A department under the Ministry of Chemicals and Fertilizers, involved in the regulation and development of the pharmaceutical industry in India.
Drugs Prices Control Order, 1995: An order issued by the Government of India to regulate the prices of drugs.
Reckitt Benckiser India Ltd.: A pharmaceutical company that manufactures Dettol Antiseptic Liquid, whose pricing is being regulated by this order.
Dettol Antiseptic Liquid: The specific pharmaceutical formulation whose price is being fixed/revised by the National Pharmaceutical Pricing Authority (NPPA).
High Court of Delhi: The court which gave directions regarding the price fixation of Dettol Antiseptic Liquid.
Essential Commodities Act, 1955: An act of the Parliament of India to provide, in the interests of the general public, for the control of the production, supply and distribution of, and trade and commerce in, certain commodities.
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MINISTRY OF CHEMICALS AND FERTILIZERS
(Department of Pharmaceuticals)
(NATIONAL PHARMACEUTICAL PRICING AUTHORITY)
ORDER
New Delhi, the 28th October, 2014
S.O. 2771(E).—In implementation of directions given in order dated 30-09-2014 in W-P (C) 2128/2014
(M/s. Reckitt Benckiser (India) Ltd. and Anr. Vs. National Pharmaceutical Pricing Authority and Ors.) by the Hon'ble
High Court of Delhi in respect of price fixation order S.O. No. 559(E) dated 14.03.2011 fixing the prices of Dettol
Antiseptic Liquid formulations, the matter has been reconsidered and re-examined by the National Pharmaceutical Pricing
Authority (hereinafter mentioned as NPPA) in line with review order passed by the Department of Pharmaceuticals vide
letter no. 31015/4/2011-PI.I dated 1.8.2013.
Therefore, in respect of above mentioned price fixation and in exercise of the powers, conferred by
sub-paragraph (1)/(2)/(4)/(7) of paragraph 8 and paragraph 11 of the DPCO, 1995 read with No. S.O. 637(E), dated the
4th September, 1997 issued by the Government of India in the Ministry of Chemicals and Fertilizers, and in supersession
of the Order of the Government of India in the Ministry of Chemicals and Fertilizers, (NPPA) No. S.O. 559(E), dated
14.03.2011, in so far as it relates to formulation packs mentioned in the table hereinbelow, the NPPA, hereby fixes/revises
the prices as specified in column (5) of the table hereto annexed as the retail price/revised retail price, exclusive of Excise
Duty, Sales Taxes/VAT and Local Taxes, if any, in relation to each of the formulation specified in the corresponding
entry in column (2) of the said table with the pack size specified in the corresponding entries in column (3) thereof;
manufactured/imported by M/s. Reckitt Benckiser (India) Ltd.
TABLE
Sl. Name of the Pack Existing Retail Price
No. formulation Size Retail without
Price Excise Duty
(Rs.) Sales Tax /VAT
and Local Tax, if any
(Rs.)
(1) (2) (3) (4) (5)
“1. Dettol Antiseptic Liquid 12x60ml -- 158.28
Each ml Contains Glass Bottle
Chloroxylenol-4.8% w/v
Terpineol-9.0% v/v
Alcohol Absolute (Denatured)-13.1% v/v
2. Dettol Antiseptic Liquid 12x110ml -- 260.90
Each ml Contains Glass Bottle
Chloroxylenol-4.8% w/v
Terpineol-9.0% v/v
Alcohol Absolute (Denatured)-13.1% v/v4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(1) (2) (3) (4) (5)
3. Dettol Antiseptic Liquid 12x210ml -- 454.50
Each ml Contains Glass Bottle
Chloroxylenol-4.8% w/v
Terpineol-9.0% v/v
Alcohol Absolute (Denatured)-13.1% v/v
4. Dettol Antiseptic Liquid 12x500ml 787.40 925.40
Each ml Contains Glass Bottle
Chloroxylenol-4.8% w/v
Terpineol-9.0% v/v
Alcohol Absolute (Denatured)-13.1% v/v
5. Dettol Antiseptic Liquid 12x5 Litre 7276.46 7805.60”
Each ml Contains HDPE Plastic
Chloroxylenol-4.8% w/v Jar Wide Mouth Cap
Terpineol-9.0% v/v
Alcohol Absolute (Denatured)-13.1% v/v
*Subject to actual payment of Government levies/taxes, as applicable.
Note :
(a) The prices fixed are the retail prices in Column no. (5) (Exclusive of Excise Duty, Sales Tax/VAT and Local
Taxes if any) for the specified pack and packs of similar strength, and companies cannot claim exemption on any
ground there from, unless specifically permitted by the Government/NPPA through an order.
(b) The companies/manufacturers may add taxes only if they have paid actually or payable to the Government on the
price mentioned in the column (5).
(c) For different packing material used or, different drug delivery systems or any other special features/forms
claimed, the retail prices, as specified in Column No. 5 above, shall be applicable unless the companies
approaches NPPA for specific price approvals for its formulations.
(d) The manufacturer/marketing company for the above said formulation shall be required to take the requisite prior
approval from the Competent Authority for any change in the composition of the above said formulation with
written prior intimation to the National Pharmaceutical Pricing Authority.
(e) These prices/revised prices shall be made effective within 15 days of receipt of this order as required under
sub- para 14(1) of DPCO, 1995. The necessary price-list should also be issued as required under sub-paragraph
(3) of paragraph 14 of the Drugs (Prices Control) Order, 1995.
(f) These prices fixed/notified hereinabove under the provisions of DPCO, 1995 have to be mandatorily
implemented by the manufacturing/marketing company notwithstanding its status of compliance of conditions
for such formulation pack under the Drugs and Cosmetics Act, 1940.
(g) The manufacturer or marketing company not complying with the ceiling prices and conditions specified in notes
hereinabove within 15 days from the date of above said notification, shall be liable to deposit overcharged
amount along with the interest under the provisions of the DPCO, 1995 read with the Essential Commodities
Act, 1955.
[PN/151/19/2014/F/[F. No. 8(19)/2014/D.P./NPPA-Div.-II]
NARESH ARYA, Dy. Director
Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.