TMI Blog2019 (2) TMI 747X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.04.2005 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. - Appeal No. E/716/2010 - A/30119/2019 - Dated:- 17-1-2019 - Mr. M. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... try soap, the valuation on MRP will not apply. They relied on the judgment of Trishul Research Laboratories Pvt Ltd [2002 (144) ELT 2014 (Tri-Delhi)]. 2. They scored out the retail price printed on the soaps and the only purpose of mentioning this price and scoring it out is to let the ultimate buyer know the money value of the gift which he receives along with the purchase of the main article. 3. In the impugned order the Commissioner has incorrectly held that the meaning of retail sale does not stipulate that the transaction should invariably be sale for money . 4. Since the supplied soap is used for promoting another printed product, it is a case of using the product for providing service of distribution of goods and hence such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the Legal Metrology Act, 2009 (1 of 2010) or the rules made thereunder or under any other law for the time being in force, to declare on the package thereof the retail sale price of such goods, to which the provisions of sub-section (2) shall apply. (2) Where the goods specified under sub-section (1) are excisable goods and are chargeable to duty of excise with reference to value, then, notwithstanding anything contained in section 4, such value shall be deemed to be the retail sale price declared on such goods less such amount of abatement, if any, from such retail sale price as the Central Government may allow by notification in the Official Gazette. (3) The Central Government may, for the purpose of allowing any abatemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, 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 (supra) has finally put to rest any doubts regarding valuation of excisable goods which are supplied free along with s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st of the argument was that there appears such declaration on the package of KITKAT and secondly it was for the purpose of servicing Pepsi thereby satisfying both the conditions for applicability of Rule 34(a). The Tribunal has rejected this argument in a very casual manner by observing: Admittedly, the situation in the present case is not covered by any of the conditions noticed in the said Rule 34. Learned counsel Shri Laxmi Kumaran pointed out that there was no question of the application of SWM (PC) Rules apart from any other reasons, because of the applicability of Rule 34. We accept the argument. After-all if the contract of the chocolates was for the purpose of advertising of a particular product of the particular ..... X X X X Extracts X X X X X X X X Extracts X X X X
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