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2024 (3) TMI 689 - AT - Central ExciseValuation - physician samples cleared by the appellant to the principal manufacturer or manufactured and cleared on job work basis - applicability of Rule 4 read with Rule 11 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 or Rule 8 of the said Rules - levy of penalty under Rule 25 of the Central Excise Rules - HELD THAT:- The Hon’ble Supreme Court in MEDLEY PHARMACEUTICALS LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE [2011 (1) TMI 13 - SUPREME COURT] has laid down This Court has upheld the conclusion of the Tribunal that the physician’s samples have to be valued on pro-rata basis. The physician samples cleared to their principal manufacturer are assessable under Rule 4 read with Rule 11 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Also, the physician samples manufactured and cleared on job work basis for free distribution also be assessed on the value of retail sale price of similar goods and not under Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, since the same were not cleared for captive consumption as observed by the Tribunal in the case of GOA ANTIBIOTICS & PHARMACEUTICALS LTD, GOA VERSUS GOA ANTIBIOTICS & PHARMACEUTICALS LTD, GOA VERSUS [2013 (12) TMI 390 - CESTAT MUMBAI] - the demand of differential duty with interest confirmed in the impugned orders does not warrant interference. Penalty u/r 25 of the Central Excise Rules, 2002 - HELD THAT:- Since the issue relates to interpretation of valuation rules, there are no merit in imposing penalty on the appellant under Rule 25 of the Central Excise Rules, 2002. The impugned orders are modified to the extent of setting aside the penalty, while upholding the demand of differential duty with interest in all the appeals. Appeals are disposed of.
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