Physician sample valuation under binding board circular upheld, and refund of excess duty sustained against Revenue challenge.

Physician samples were required to be assessed on the basis of 115% of cost of production under the applicable Board circular, which was binding on the Revenue. The appellate order granting refund of excess duty was consistent with that circular, and no legal infirmity was found in that approach. Revenue's challenge therefore failed, and the order in favour of the assessee was sustained.

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Issues: Whether physician samples were required to be assessed to duty on the basis of 115% of cost of production in terms of the Board circular, and whether the Revenue could succeed in challenging the refund of excess duty.

Analysis: The dispute related to the period November 2001 to October 2002. The Board circular governing physician samples prescribed the method for arriving at assessable value on the basis of 115% of cost of production. Such circulars are binding on the Revenue, and the appellate order granting refund followed the circular. No infirmity was found in that approach.

Conclusion: The challenge by the Revenue failed and the order in favour of the assessee was sustained.

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