Valuation of same medicines under different methods: no prima facie case for full pre-deposit waiver in excise dispute.

In a valuation dispute over medicines cleared both as MRP-marked goods under Section 4A of the Central Excise Act, 1944 and as physician's samples at a lower declared value, the Tribunal held that the department's prima facie position was sound that the same goods should not bear different duty burdens merely because different valuation methods were used. As no prima facie case for complete waiver of pre-deposit was shown, the Tribunal directed a partial pre-deposit and waived the balance pending compliance with that direction.

---

---

Issues: Whether the appellants had made out a prima facie case for total waiver of pre-deposit in a dispute concerning valuation of the same medicines cleared as MRP-marked goods and as physician's samples.

Analysis: The medicines were cleared in two forms, one assessed under Section 4A of the Central Excise Act, 1944 on the basis of MRP and the other shown as physician's samples with a lower declared value. The Tribunal took the view that, prima facie, the department's contention was sound that the same goods should not bear different duty burdens merely because different valuation methods were adopted. On that basis, no prima facie case was found for complete waiver of pre-deposit.

Outcome: The appellants were directed to pre-deposit Rs. 15,00,000 within four weeks, and the balance pre-deposit was waived pending the appeal subject to compliance.

---