Physician sample valuation under Central Excise law accepted on transaction value, not deemed value, for clearances to brand owners.

Physician samples cleared to brand owners were held assessable on transaction value under section 4 of the Central Excise Act, 1944, because prior Tribunal authority had already treated such valuation questions as settled where the samples are cleared against consideration. On that basis, section 4A valuation was rejected and the appellant's valuation method for the samples was accepted as correct. Duty was therefore payable under section 4 on transaction value, not under section 4A.

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Issues: Whether physician samples cleared to brand owners were liable to duty under section 4A of the Central Excise Act, 1944, or were to be valued on transaction value under section 4 of the Central Excise Act, 1944.

Analysis: The issue was treated as no longer res integra in view of prior Tribunal authority holding that where samples are cleared on receipt of consideration, duty is payable on transaction value. The valuation adopted by the appellant for physician samples cleared to the brand owner was therefore accepted as correct.

Conclusion: The appellant was not required to pay duty under section 4A of the Central Excise Act, 1944, and duty was payable on transaction value under section 4 of the Central Excise Act, 1944.

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