TMI Blog2018 (5) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... . However the same has been subsequently revised vide circular dated 25.04.2005 in which it has been specified that the valuation of samples can be done in terms of Rule 4. The issue of time-bar has also been discussed by the authorities below. In the impugned order it has been recorded that the appellant after shifting the unit to the present jurisdiction has failed to give information regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res for demonstration as well as for replacement. At the time of clearance of such meters, since there was no sale, the central excise duty was paid in terms of Rule 8 of the Central Excise (Valuation) Rules by adopting the value as 115% of the cost of manufacture of said goods. The Department however was of the view that the duty is required to be paid on the basis of comparable goods and accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CBEC had issued a revised clarification dated 25.04.2005 in which the previous circular was changed and it was opined by CBEC that in the case of free sample the value should be determined under Rule 4 of the Central Excise Valuation Rules, 2000. He also submitted that the demand is hit by time-bar. 4. The learned DR on the other hand justified the impugned order. He submitted that after t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n which it has been specified that the valuation of samples can be done in terms of Rule 4. We find that the revised CBEC circular along with earlier one has been elaborately considered by jurisdictional Karnataka High Court and it has been decided by the Hon'ble High Court that the valuation of samples cleared for demonstration may be correctly done in terms of Rule 4 of the Central Excise Va ..... X X X X Extracts X X X X X X X X Extracts X X X X
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