Transaction value applies to physician's samples when a normal price is available; pro rata valuation is inapplicable.

Where physician's samples manufactured through a job worker are sold and a normal price is available, assessable value must be determined under transaction value under Section 4(1)(a) of the Central Excise Act. The Tribunal followed the Supreme Court's binding view and held that the pro rata method based on commercial pack value was not applicable on those facts. The earlier remand order was therefore unsustainable, and the impugned order was set aside with the matter remanded to the original adjudicating authority for valuation to be worked out accordingly.

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Issues: Whether physician's samples manufactured through a job worker were liable to assessment under the transaction value under Section 4(1)(a) of the Central Excise Act, or on a pro rata basis under the alternative valuation approach.

Analysis: The Tribunal followed the binding decision of the Supreme Court in the same line of dispute and noted that where physician's samples are sold and a normal price is available, valuation has to proceed on transaction value under Section 4(1)(a). The pro rata method based on commercial pack value was held inapplicable on the facts, and the earlier remand order was therefore unsustainable.

Conclusion: The valuation of the physician's samples was required to be determined under Section 4(1)(a) on transaction value, not on a pro rata basis; the impugned order was set aside and the matter was remanded to the original adjudicating authority to decide accordingly.

Ratio Decidendi: Where physician's samples are sold and a normal price is available, assessable value must be determined under Section 4(1)(a) of the Central Excise Act on transaction value, and not by adopting a pro rata value based on commercial packs.

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