Subject to the provisions of rule 36, the manufacture of manufactured drugs notified under sub-clause (b) of clause (xi) of section 2 of the Act including the essential narcotic drugs notified under clause (viiia) of section 2 of the Act (hereafter referred to as the drug) but not including preparation containing any manufactured drug from materials which the maker is lawfully entitled to possess is prohibited save under and in accordance with the conditions of a licence granted by the Narcotics Commissioner or such other officer as may be authorised by the Central Government in this behalf, in Form No. 3 appended to these rules.
Exp/anation.-For the removal of doubts it is hereby clarified that the licence to manufacture a preparation containing any manufactured drug and including the preparation notified as essential narcotic drugs under clause (viiia) of section 2 of the Act shall be regulated under the rules made by the State Government under section 10 of the Act.]