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TMI Blog2011 (6) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 3-12-2010 [2011 (265) E.L.T. 112 (T)], stay applications were disposed of and it was observed that the physician samples must be on the same value on which duty is being paid on trade packs as per Section 4A. Therefore, prima facie it was not found a complete waiver of pre-deposit, accordingly, the appellants were asked to make a pre-deposit of Rs. 15,00,000/- within a period of four weeks and report compliance on 14-1-2011. The appellants challenged the stay order before the Hon'ble High Court of Bombay in Central Excise Appeal No. 3/2011 [2011 (270) E.L.T. 383 (Bom.)] wherein the Hon'ble High Court of Bombay has set aside the order of this Tribunal wherein the appellants were directed to make a pre-deposit of Rs. 15,00,000/- for ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long with interest and equal amount of penalty were also imposed. Aggrieved by the said order the appellants are before us. 3. Heard both sides. 4. Ms. Charanya Lakshmikumaran, learned Advocate for the appellants submits that in this case the appellants are the manufacturer of P & P medicaments on contract/job work basis. The goods manufactured by them are cleared to brand owners after discharging duty liability as per the provisions of Central Excise law. She further submitted that these medicines are meant for retail sale for which they are required to fix M.R.P. on the each trade pack. Accordingly, they are discharging their duty liability on the trade packs wherein M.R.P. written on the face of the packs. On this account the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther submitted that their case is strongly covered by the decision of this Tribunal in the case of Themis Laboratories Pvt. Ltd. & Meghdoot Chemicals Ltd. vide Order No. A/187 to 189/2011/EB/C-II, dated 1-2-2011 wherein on similar facts, this Tribunal has held that in the case of physician samples cleared by the contract manufacturer, the physician samples are to be assessed on transaction value and in case of jobwork, physician samples should be valued as per CAS 4, therefore, stay may be granted. She further submitted that in the appellants own case for the earlier period this Tribunal has granted unconditional stay. Therefore, following the same ratio, stay may be granted. 5. On the other hand the learned DR strongly relied on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturer jobworker and clearing their physician samples on principal to principal basis to their buyers/principle manufacturer on payment of duty i.e. in case of contract manufacture on transaction value and in case of jobwork as per CAS 4. These facts are not in dispute. It is an admitted fact that the appellants are not clearing the physician samples free of cost to their buyers or to anybody-else but the same are cleared on transaction value/CAS 4 which facts to be noted. We have also examined the facts of the cases in the case of Indian Drugs Manufacturer's Association, Cadila Pharmaceuticals Ltd. and Medley Pharmaceuticals Ltd. In all the cases, we find that these physician samples have been cleared by the manufacturer of physician ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellants are the manufacturer of medicaments and clears the physician from their factory in following manner - (a) on the basis under P & P contract arrangements on transaction value and (b) on job work basis to arrive the assessable value by adopting cost construction method. In those cases, this Tribunal has held that in the case of contract price the appellants have rightly assessed these physician samples which were cleared by them free of cost at the time of clearance on a transaction value on principal to principal basis and in case of jobwork these physician samples have been cleared on cost construction method i.e. CAS-4. We find that the facts in the case of Themis Laboratories Pvt. Ltd. (supra)/Meghdoot Chemical Ltd. (supra) a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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