Abstract

The production and sale of medicinal and toilet preparations containing ingredients like alcohol, opium, Indian hemp, and narcotic drugs are governed by the Medicinal and Toilet Preparations (Excise Duties) Act of 1955. The 7th Schedule of the Indian Constitution provides exemptions for traditional medicine systems like Ayurveda, Unani, and Homeopathy. The Act's main objectives are to collect excise duties on relevant preparations and ensure uniformity in duty rates and rules across India. It has undergone amendments to adapt to changing circumstances. A critical component of this case study is an in-depth analysis of a real legal case was raised when licenses for manufacturing ayurvedic medicines were not renewed, emphasizing the importance of upholding constitutional principles and rights while regulating these products. The MNTP Act, 1955, is a crucial legislation that regulates the production and sale of controlled substances, ensuring a balance between public health and industry interests. This act regulates the manufacture sale import and export of the preparation. It empowers the Central Government for making the rules for the pricing of the duty, exemptions and remissions. It also provides for the establishment of laboratories for testing and analysis of dutiable goods. The act aims to maintain uniformity in the regulations and tax rates that apply to preparations covered by the act.

Keywords

Introduction

OFFENCES AND PENALTIES:(17,18)

       
           
       
    

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DISCUSSION:

Case study (19)

Shree Baidyanath Ayurved Bhawan ... vs State of Bihar & Ors

IN THE HIGH COURT OF JUDICATURE AT PATNA

Petitioner:

Shree Baidyanath Ayurveda Bhawan Pvt. Ltd., Samrat Chemical Industries.

Respondents:

The State of Bihar through the Chief Secretary, Government of Bihar.

The Principal Secretary, Registration, Excise and Prohibition Department, Government of Bihar, Patna.

The Excise Commissioner, Excise and Prohibition, Government of Bihar, Patna.

The Collector of Patna (in Shree Baidyanath Ayurveda Bhawan Pvt. Ltd.'s case) and the Collector of Vaishali (in Samrat Chemical Industries' case).

The Assistant Commissioner of Excise, Patna (in Shree Baidyanath Ayurveda Bhawan Pvt. Ltd.'s case) and the Superintendent of Excise, Vaishali (in Samrat Chemical Industries' case).

Case no: 6415 of 2016, 6404 of 2016

Date:  27 -10-2016

Fact of the case:

The dispute centers on the invalidation of Clause 3 of a Circular dated 17.3.2016, which informs Collectors-cum-District Magistrates in Bihar that licenses granted under The Medicinal and Toilet Preparations (Excise Duties) Act, 1955 (MNTP Act) permits the manufacturing of medications containing alcohol, opium, Indian hemp, and other narcotic drugs; however, licenses for the manufacture of narcotics will not be renewed, and no new licenses will be granted. The MNTP Act grants permits to Shree Baidyanath Ayurveda Bhawan Pvt. Ltd. and Samrat Chemical Industries for the production of ayurvedic medications, some of the preparation which contain alcohol. The petitioners are asking the Excise Commissioner to renew their licenses and to invalidate the circular.

Contention of the case:

According to the petitioners, they have been producing Ayurvedic medications for many years in line with MNTP Act and Ayurvedic principles, some of which contained alcohol and other drugs.

They claimed that the Excise Commissioner's circular, which forbade the renewal of licenses for certain drugs, was illegal and had an impact on their way of life and their enterprises. The petitioners asked for the circular to be overturned and for their manufacturing licenses to be renewed so they could keep making these medications. Clause 3 of the circular was sent to the collectors cum magistrate of the state, was issued by excise commissioner of Bihar on march 17th 2016. It announced a shift in policy by not renewing licenses granted under this act.

SUMMARY:

In conclusion, The petitioners' writ applications were granted by the court. It quashed Clause 3 of the March 17, 2016, Excise Commissioner of Bihar Circular.

The petitioners' licenses must be quickly renewed, according to instructions given to the respondents in Forms L-1 and ND-1.(20)

 The judgment clarified that the state could impose reasonable restrictions but could not entirely prohibit the trade or business in such medicines. It emphasized the importance of upholding constitutional principles and rights while regulating these products.

CONCLUSION:

From the above information provided on the case study related to MNTP act, the petitioners claimed that the MNTP Act, 1955, passed by Parliament in accordance with Entry 84 of List I of the Seventh Schedule of the Indian Constitution, granted the central government authority over excise duties related to these preparations. They contended that the State Government, exercising its powers under Entry 8 of List II, cannot prohibit the manufacture and sale of medicinal preparations containing specified substances as they are not equivalent to alcoholic beverages and are used for medicinal purposes. The petitioners emphasized that Article 47 of the Indian Constitution, law promotes the prohibition of harmful intoxicating drinks and drugs, but allows for the exemption of medicinal preparations containing alcohol.

REFERENCES

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