Loan licensee price list obligation rests with principal manufacturer, so exemption under Notification No. 245/83 was validly allowed.

Notification No. 245/83 granted partial exemption to patent or proprietary medicaments only where the exemption was claimed for medicines cleared with a retail price stated in the relevant price list. The price list contemplated was the one required under Paragraph 19 of the Drugs (Prices Control) Order, 1979. Where the medicines were manufactured by a loan licensee on behalf of the principal manufacturer, the duty to file that price list rested on the principal manufacturer, not the loan licensee. Accordingly, omission by the respondent from its own price list did not constitute breach of the third proviso, and the exemption remained available.

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Issues: Whether the respondent contravened the third proviso to Notification No. 245/83 by not including in its price list the medicines manufactured as a loan licensee on behalf of the principal manufacturer.

Analysis: The notification granted partial exemption to patent or proprietary medicaments, subject to the condition that exemption be claimed in respect of medicines cleared with a retail price specified in the relevant price list. The price list contemplated by the notification was the one required under Paragraph 19 of the Drugs (Prices Control) Order, 1979. Since the goods were manufactured by the respondent as a loan licensee on behalf of the principal manufacturer, the obligation to file the price list for those goods rested on the principal manufacturer, not on the respondent. The respondent's omission to include those goods in its own price list did not amount to breach of the proviso.

Conclusion: The respondent did not contravene the condition in the proviso to Notification No. 245/83, and the exemption was correctly allowed.

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