Physician sample demand calculation remanded for fresh assessment.

The appeal was allowed by way of remand as the impugned order did not quantify the demand on physician samples cleared for free distribution separately for two distinct situations. The matter was remanded to the original adjudicating authority to pass a fresh order in line with the assessment principles discussed for both scenarios, one involving physician samples manufactured for loan licensees and the other for free distribution to physicians.

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Issues:
Demand on physician samples cleared for free distribution

Analysis:
The appeal was filed against the order confirming the demand on physician samples cleared for free distribution. The appellant did not appear on multiple occasions, leading to the matter being taken ex-parte. The demand was raised for physician samples cleared by the appellant, both on their own behalf and to loan licensees. The Revenue demanded duty based on MRP prices. The lower authority confirmed the demand, leading to the appeal.

In the first situation, where the appellant manufactured physician samples for loan licensees, the assessment was to be done based on the transaction value of sale from the appellant to the loan licensee. This was in line with the decision of the Hon'ble Apex Court in a specific case. The second situation involved physician samples manufactured by the appellant for free distribution to physicians. The law, as settled by the Hon'ble High Court of Bombay, required these samples to be assessed based on the value ascertained for identical medicine cleared in the open market under Section 4A of the Central Excise Act.

As the impugned order did not quantify the two categories separately, it was set aside. The matter was remanded to the original adjudicating authority to pass a fresh order in line with the assessment principles discussed for both situations. The appeal was allowed by way of remand.

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