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2017 (11) TMI 1518 - AT - Central ExciseValuation - job-work - physician samples - samples sold on principal to principal basis and manufactured on job work basis and returned the goods to the principal - In case of sale of goods, the appellants are adopting the transaction value in terms of Section 4 (1) (a) of Central Excise Act, 1944 and in the case of job work they are paying duty on cost of manufacture plus 10% of notional profit - claim of the Revenue is that the value should have been arrived at on the basis of Rule 4 of Central Excise Valuation Rules, 2000 by taking the pro rata value of the trade pack of the same medicines. Held that: - very same issue decided in the case of Medispray Laboratories Pvt.Ltd. & Others [2017 (2) TMI 309-CESTAT Mumbai] - According to said judgement, Rule 4 of Central Excise Valuation Rules, 2000 shall apply only in those cases where the manufacturer manufacturing the physician samples and they themselves supplying free samples in the market and not in the case of physician samples sold on principal to principal basis. It was also held in the said judgements that in case of physician samples manufactured on job work basis and cleared to principal the valuation should be on 110% of the manufacturing cost. Appeal allowed - decided in favor of appellant.
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