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2019 (11) TMI 554 - AT - Central ExciseMethod of Valuation - applicability of Rule 4 of the Central Excise Valuation Rules, 2004 or Section 4(1)(a) of the Central Excise Act, 1944? - Valuation - physician samples cleared by the appellant - sale of such samples on principal to principal basis to customers - clearance of physician samples manufactured on job work basis (loan licensee) to the principal manufacturer - appellants are determining the value of the medicaments sold to their customers by adopting the transaction value under Section 4(1)(a) of the Central Excise Act, 1944 when the goods were sold, but when it was manufactured on job work basis (loan licensee) valued the same by taking the cost of production + 10% as provided in Rule 8 of the Central Excise Valuation Rules, 2000. Revenue disputed the method of valuation and alleging that the physician samples cleared by the appellant should have been valued in accordance with Rule 4 of the Central Excise Valuation Rules, 2000 by adopting the pro rata value of the trade pack of the medicaments. HELD THAT:- This Tribunal following the ratio laid down by Hon’ble Supreme Court in COMMR. OF CENTRAL EXCISE & CUSTOMS, SURAT VERSUS M/S SUN PHARMACEUTICALS INDS. LTD. & ORS. [2015 (12) TMI 670 - SUPREME COURT] observed that whatever goods were sold by the appellant to their principal is correct transaction value in terms of Section 4. In both type of clearances in any circumstances, Rule 4 valuation shall not apply. Appeal allowed - decided in favor of appellant.
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