In Brief
GlaxoSmithKline Pharmaceuticals was granted an exemption from drug price controls under the DPCO 1987 until 31 December 1994 for manufacturing Betamethasone Disodium Phosphate. The Government later demanded recovery of Rs 2.04 crores, claiming the company overcharged after the exemption expired. The Supreme Court held that an exemption relates only to the manufacture of drugs, not their sale. Goods manufactured during the exemption period may be sold at the manufacturer's own uncontrolled price even after exemption expires. The court distinguished price-fixation from exemption notifications and allowed the appeal, setting aside the High Court's judgment.
The lawyer headnote and full judgment text are available to registered users.