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of <h1>Medicaments for Institutional Buyers Valued under Central Excise Act</h1> <h3>JB Chemicals & Pharmaceuticals Limited Versus Commissioner of Central Excise & ST, Daman</h3> JB Chemicals & Pharmaceuticals Limited Versus Commissioner of Central Excise & ST, Daman - TMI Issues Involved:1. Whether the medicaments supplied to institutional buyers like Indian Railways, Government Hospitals, BHEL for their exclusive use are subjected to assessment under Section 4 or 4A of the Central Excise Act, 1944.Summary:Issue 1: Assessment of Medicaments Supplied to Institutional BuyersThe primary issue in this case is whether the medicaments supplied to institutional buyers such as Indian Railways, Government Hospitals, and BHEL for their exclusive use should be assessed under Section 4 or 4A of the Central Excise Act, 1944.The appellant argued that this issue has been previously considered in various judgments, including decisions in their own case on identical facts, where it was held that medicaments supplied to institutional buyers are governed by Section 4 of the Central Excise Act, 1944, and duty is payable on transaction value. The appellant relied on several decisions, including:Medley Pharmaceuticals Limited vs. C.C.E & S.T., DamanZydus Healthcare Limited vs. C.C.E & S.T., DamanUSV Limited vs. C.C.E & S.T., DamanBiochem Pharmaceutical Industries vs. Commissioner of Central Excise and Service Tax, DamanJB Chemicals & Pharmaceuticals Limited vs. C.C.E. & S.T. DamanThe respondent reiterated the findings of the impugned order, arguing that the valuation should be under Section 4A of the Central Excise Act, 1944.The Tribunal, after considering the submissions and perusing the records, found that the supplies in question were not for retail sale but for exclusive use by government institutions. Since the goods were not meant for retail sale and no MRP was printed on the packages, the valuation under Section 4A of the Central Excise Act, 1944, was not applicable. This position was supported by previous decisions, including the appellant's own case and the case of Medley Pharmaceuticals Ltd., where it was consistently held that the valuation of medicaments supplied to government hospitals and institutional buyers should be governed by Section 4 and not Section 4A.Based on the consistent view taken by the Tribunal in similar cases, the impugned orders were set aside, and the appeals were allowed. The Tribunal concluded that the issue is no longer res integra and affirmed that the value of goods supplied to institutional buyers is governed by Section 4 of the Central Excise Act, 1944.(Pronounced in the open court on 07.07.2023)
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