Item
No.
Description of dutiable goods Rate of duty
(1) (2) (3)
Medicinal Preparations
1. Allopathic Medicinal Preparations:
(i) Medicinal preparations containing alcohol which are
not capable of being consumed as ordinary alcoholic
beverages―
(a) Patent or proprietary medicines Twenty per cent. ad valorem.
(b) Others Twenty per cent. ad valorem.
(ii) Medicinal preparations containing alcohol which are
capable of being consumed as ordinary alcoholic
beverages―
(a) Medicinal preparations which contain known
active ingredients in therapeutic quantities
Twenty per cent. ad valorem.
(b) Others Twenty per cent. ad valorem.
(iii) Medicinal preparations not containing alcohol but
containing narcotic drug or narcotic
Twenty per cent. ad valorem.
2. Medicinal preparations in Ayurvedic, Unani or other
indigenous systems of medicine―
(i) Medicinal preparations containing self-generated
alcohol which are not capable of being consumed as
ordinary alcoholic beverages
Four per cent. ad valorem.
(ii) Medicinal preparations containing self-generated
alcohol which are capable of being consumed as
ordinary alcoholic beverages
Four per cent. ad valorem.
(iii) All others containing alcohol which are prepared by
distillation or to which alcohol has been added
Six per cent. ad valorem.
(iv) Medicinal preparations not containing alcohol but
containing narcotic drug or narcotic
Twenty per cent. ad valorem.
3. Homeopathic preparations containing alcohol Four per cent. ad valorem.
Toilet preparations
4. Toilet preparations containing alcohol or narcotic drug or
narcotic
Fifty per cent. ad valorem.
Explanation I.―“Patent or proprietary medicines” means any medicinal preparation
which bears either on itself or on its container or both, a name which is not specified in a
monograph in a pharmacopoeia, formulary or other publications notified in this behalf by
the Central Government in the Official Gazette, or which is a brand name, that is, a name or
a registered trade-mark under the Trade and Merchandise Marks Act, 1958 (43 of 1958) or
any other mark such as a symbol, monogram, label, signature or invented words or any
writing which is used in relation to that medical preparations for the purpose of indicating
or so as to indicate a connection in the course of trade between the preparation and some
person having the right either as proprietor or otherwise to use the name or mark with or
without any indication of the identity of that person.
1. Subs. by Act 10 of 2000, s. 115 and the Sixth Schedule (w.e.f. 1-3-2003).
9
Explanation II.―Where any article is chargeable to duty at a rate dependent on the value
of the article, such value shall be deemed to be the value as determined in accordance with
the provisions of section 4 of the Central Excise Act, 1944 (1 of 1944).
Explanation III.―(1) Notwithstanding anything contained in Explanation II, the Central
Government may, by notification in the Official Gazette, specify any dutiable goods, in
relation to which it is required, under the provisions of the 1
[Legal Metrology Act, 2009
(1 of 2010)] or the rules made thereunder or under any other law for the time being in force,
to declare on the package thereof the retail sale price of such goods, to which the provisions
of clause (2) shall apply.
(2) Where dutiable goods specified under clause (1) are chargeable to duty with
reference to value, then, notwithstanding anything contained in Explanation II, such value
shall be deemed to be retail price declared on such goods less such amount of abatement, if
any, from such retail price as the Central Government may allow by notification in the
Official Gazette.
(3) The Central Government may, for the purpose of allowing any abatement under
clause (2), take into account the duty of excise, sales tax and other taxes, if any, payable on
such goods.
(4) Where on the package of any dutiable goods more than one retail sale price is
declared, the maximum of such retail sale shall be deemed to be the retail sale price for the
purposes of clause (2).
(5) Where different retail sale prices are declared on different packages for the sale of
any dutiable goods in packaged form in different areas, each such retail sale price shall be
the retail sale price for the purposes of valuation of the dutiable goods intended to be sold in
the area to which the retail sale price relates.
(6) For the purpose of this Explanation, “retail sale price” means the maximum price at
which the excisable goods in packaged form may be sold to the ultimate consumer and
includes all taxes local or otherwise, freight, transport charge, commission payable to
dealers, and all charges towards advertisement, delivery, packing, forwarding and the like,
as the case may be, and the price is the sole consideration for such sale.]
1. Subs. by Act 8 of 2011, s. 76, for “Standards of Weights and Measures Act, 1976 (60 of 1976)” (w.e.f. 8-4-2011).
Notification New Delhi, dated the 1st March, 2003
No. 3/2003-M&TP 10 Phalguna, 1924 (Saka)
G.S.R. (E).- In exercise of the powers conferred by section 3 of the Medicinal and Toilet
Preparations (Excise Duties) Act, 1955 (16 of 1955), read with clause (1) of Explanation III of the
Schedule to the said Act, the Central Government hereby specifies that the provisions of clause (2) of said
Explanation III shall apply to the dutiable goods of the description specified in column (3) of the Table
below and falling within the Item No. of the said Schedule, specified in the corresponding entry in column
(2) of the said Table and allows as abatement the percentage of the retail sale price as specified in the
corresponding entry in column (4) of the said Table.
Table
S. No. Item No. Description of dutiable goods Abatement
(1) (2) (3) (4)
1. 4. Toilet preparations containing alcohol or narcotic
drug or narcotic
40%
[F.No.334/1/2003-TRU]
(Alok Shukla)
Deputy Secretary to the Government of India