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2016 (12) TMI 524 - AT - Central ExciseValuation - Physical sample - Transaction value or MRP Basis - Rule 4 of Central Excise Valuation Rules, 2000 - Held that: - when the excisable goods are sold and the transaction value is not tainted by any factor and is fulfilling the conditions of Section 4(1)(a), the tax liability has to be discharged in terms of such transaction value. We find that Section 4A will come into play when the physician samples are also covered under the said category for MRP based assessment - Since physician samples are not sold in retail and MRP is not fixed on the same and when the samples were sold by the appellant-assessee on a transaction value to the principal customer such transaction value should form basis of assessment. Regarding goods manufactured on loan licence basis where raw material and packing material were given by the principal brand owner, the appellant -assessee followed cost construction method to value the physician samples cleared by them to the principal manufacture - Held that: - Hon’ble Supreme Court in the case of Biochem Pharmaceuticals India Limited vs. CCE, Daman, Vapi [2015 (9) TMI 312 - SUPREME COURT] held that the provisions of Rule 3 to 5 of the Valuation Rules, 1975 are not applicable. We note that Rule 4 of 1975 Rules and Rule 4 of 2000 Rules are identical. Further, the Hon’ble Supreme Court also referred to the CESTAT decision which accepted valuation to be on the basis of cost of production or manufacture of the goods - Appeal allowed - decided in favor of the assessee.
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