TMI Blog2018 (11) TMI 1380X X X X Extracts X X X X X X X X Extracts X X X X ..... llant: Shri S.J. Vyas, Advocate For the respondent: Shri Amit Kr. Mishra, Dy. Commr. (AR) ORDER Per: Raju These appeals have been filed by M/s Vapi Organic Chemicals Pvt. Ltd., Shri R.K. Parmar and Shri HG Patel against confirmation of demand of duty on physician samples and imposition of penalties. 2. We find that Revenue had demanded Excise Duty in respect of Physician samples manufactured by the appellant on job work basis for other parties. The said physician samples were in dispute by other parties free of cost, i.e., to Doctors, etc. Revenue has demanded Excise duty on MRP basis. We find that the issue is squarely covered by the decision of Tribunal in the case of SOFTSULE Pvt. Ltd 2018 (06) TMI 985 (Tri- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TAT depicts the correct position of law and rightly holds that the case would be covered by the provisions of Section 4(1)(a) of the Act and in view thereof Rule 6(b)(ii) of the Rules would not apply. Resultantly, Civil Appeal Nos. 3742-3744 of 2007 of the Revenue fail and are hereby dismissed. In view of the aforesaid decision of Hon ble Apex Court, the assessment of physician sample sold by the appellant to others who may be distributing the same free of cost are to be assessed under Section 4(1)(a) of the Central Excise Act, 1944. Thus, the demand of duty of value arrived at on the basis of MRP is not sustainable. 5. In the case of Omni Protech Drugs Pvt. Ltd. Vs. Commissioner of Central Excise, Pune-I-2011 (274) ELT 377 (Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aboratories Pvt. Ltd. (supra) is that if the manufacturer clearing the physician samples to the brand owner on transaction value, the transaction value is the assessable value. Therefore, following the ratio laid down in the Tribunal s decision in the case of Themis Laboratories Pvt. Ltd. (supra) we hold that the appellant has correctly valued their product i. e. cost of raw material inputs + job charges. In view of the above observations, we set aside the impugned order and allowed the appeal without going into the issue of limitation. In view of above the assessable value of physician sample which are manufactured on job work basis for others who may be distributing the same free of cost, has to be done on the basis of value arrived at in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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