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2019 (8) TMI 1233 - AT - Central ExciseValuation - job-work - clearance of ‘physician samples’ to the ‘principal manufacturer’ - period between January 2005 and November 2006 - HELD THAT:- There is no doubt that, prima facie, ‘physician samples’ are not covered by the prescription in section 4A of Central Excise Act, 1944 and, therefore, subject to the default scheme envisaged under section 4 of Central Excise Act, 1944. The appellant has been discharging duty liability on the transaction value at which goods are cleared to M/s Novartis India Ltd on ‘principal-to-principal’ basis. Such transaction value may be market determined or on ‘cost plus’ basis and adoption of either does not detract from being transaction value. It would also appear that the clarification issued by Central Board of Excise & Customs, in circular no. 813/10/2005-CX dated 25th April 2005 has been misconstrued by the central excise authorities inasmuch as it pertains to the clearance of ‘physician samples’ by the manufacturers themselves. In Commissioner of Central Excise & Customs, Surat v. Sun Pharmaceuticals Industries Ltd [2015 (326) ELT3 (SC)], the Hon’ble Supreme Court approved the decision of the Tribunal that as long as physician samples are sold and the characteristics for the transaction conform to the enumeration in section 4(1)(a) of Central Excise Act, 1944, acceptance of the invoice price is not flawed. Appeal dismissed - decided against Revenue.
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