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2016 (4) TMI 323 - AT - Central ExciseValuation of physician samples - Duty paid on the basis of 110% of the cost of production but revenue demanded duty at the value to be determined under rule 4 of the CER Valuation Rules - Revenue contended that applicant manufactured physician samples and distributes or sells for distribution free of cost - Held that:- the physician samples are not being distributed free of cost by CRL. They are being manufactured on the job work basis for the principal manufacturer and they are being sent back to the principal manufacturer. Therefore, in view of the decision of Tribunal in the case of Omni Protech Drugs Pvt. Ltd. vs CCE, Pune [2011 (6) TMI 532 - CESTAT, MUMBAI], arrived at as per formula laid down by the Hon'ble Apex Court in the case of Ujagar Prints et. etc. vs. Union of India & others [1989 (1) TMI 124 - SUPREME COURT OF INDIA], it is not open to the revenue to demand duty on the value arrived at in terms of rule 4 of the Central Excise Valuation rules. Demand of excise duty - Duty paid on the basis of 110% of the cost of production but revenue demanded duty at the value to be determined under rule 4 of the CER Valuation Rules - Applicant manufacturing physician samples for itself and selling the same to Cosmae Farma Laboratories - Held that:- the goods are not being distributed free of cost. By following the decision of Hon'ble Supreme Court in the case of CCE vs. Sun Pharmaceuticals Industries Ltd. [2015 (12) TMI 670 - SUPREME COURT] which squarely covers the present case, since there is a transaction value available at which the goods are sold by the assessee to the distributors, and the same has not been challenged, the same should be assessable value under Section 4(1)(a) of the Central Excise Act. - Decided against the revenue
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