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2019 (3) TMI 786 - AT - Central ExciseMethod of valuation - free physician samples sold to distributors - section 4A of Central Excise Act, 1944 or not - It is the case of the department that physician samples cannot be sold and the assertion that they are sold is incorrect because it violates the Drugs & Cosmetics Rules. Therefore, physician’s samples should be treated at par with the normal goods - Held that:- This question as to how to value physician samples which are sold and not supplied free was answered in the case of Parnax Lab. Pvt. Ltd. vs. CCE, Vapi [2012 (11) TMI 254 - CESTAT, AHMEDABAD], where it was held that the demand of the duty liability on the physician samples sold by the appellant to the principals, the assessable value as ascertained by the assessee and the duty liability discharged is correct and there is no reason for recalculating the assessable value based upon the value arrived at on pro rata basis of sales pack. Once the samples are sold and there is a transaction value, the price at which they are sold forms the assessable value and the assessment has to be done. Therefore, no differential duty can be charged, holding that Section 4A should be applied even in cases where the appellant has sold the physician samples. On the factual position whether the physician samples were actually sold or otherwise, the matter needs to be verified by the adjudicating authority after giving the appellant an opportunity to present the documents - appeal allowed by way of remand.
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