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2019 (2) TMI 747 - AT - Central ExciseMethod of valuation - section 4 or 4A of CEA - free soaps supplied - the wrappers clearly indicate that they are not meant for sale - MRP indicated but scored out, clearly indicating that the price is only for information and not for sale - Held that:- CBEC Circular No.673/64/2002-CX dated 28.10.2002 held that the scored out MRP should be ignored. However, where the multi pieces are packaged into single item with MRP printed on both individual items and multi pack, if individual items have MRPs printed on them but scored out, then the MRP printed on the multipack will be taken for the purpose of valuation. In the subsequent Circular No. 813/10/2005-CX dated 25.04.2005 on the question of samples which are distributed free as a part of marketing strategy or as gifts or donations CBEC clarified that in case of free samples, the value should be determined under Rule 4 of Central Excise Valuation Rules. The Hon’ble Supreme Court in the case of Jayanti Food Processing Pvt Ltd [2007 (8) TMI 3 - SUPREME COURT] has finally put to rest any doubts regarding valuation of excisable goods which are supplied free along with some other products holding that where goods are supplied free Sec.4A of the Central Excise Act will not apply - The present case is squarely covered by this decision - appeal allowed - decided in favor of appellant.
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