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2018 (3) TMI 619 - CESTAT MUMBAIMethod of Valuation - transaction value or MRP based value - physician samples cleared free of cost - revenue is seeking to demand duty on the value arrived at on pro rata basis depending on the assessable value arrived at for clearance of the same medicines on MRP basis. Held that: - the physician samples are cleared free of cost for distribution to the physicians as samples. Other than the packing of the goods, the goods are identical in nature in respect of quality. Even the packing is similar in many cases although the physician samples would contain and indication to that effect and would not contain the MRP. The physician samples are not sold by the appellants but are cleared free cost. It is not the appellant's case that any of the Rule 4 to 10 of the Central Excise Valuation (determination of price of excisable goods) Rules 2000 are directly applicable. Since no transaction value available, the assessment cannot be done under Section 4 (1) (a) and the assessment has to be done under Section 4 (1) (b). The assessment cannot be done under Section 4A as the said goods are not marked with MRP - identical goods are different only in respect of size of packing and marking of MRP, are being assessed under Section 4A of the Central Excise Act and such comparable value after suitable adjustments can be adopted for the purpose of assessment of physician samples in terms of Rule 4 of Central Excise Valuation (determination of price of excisable goods) Rules, 2000. This does not amount to application of Section 4A of the Central Excise Act to physician samples. This is only a measure of taking an alternate value of similar goods for the purpose of Central Excise (Valuation) Rules, 2000 in terms of Rule 11 thereof. Larger Bench of the Tribunal in appellant own case BLUE CROSS LABORATORIES LTD. Versus COMMR. OF C. EX., MUMBAI [2006 (8) TMI 220 - CESTAT, MUMBAI] has held that the physician samples cannot be assessed under Rule 4 of the Central Excise (Valuation) Rules 1975, after comparing the value with the normal trade pack. Appeal dismissed - decided against appellant.
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