Valuation of physician samples marked not for sale falls under transaction value, not retail-price based excise valuation.

Physician samples cleared to a distributor marked "not for sale" and without MRP were not meant for retail sale, so valuation under Section 4A of the Central Excise Act, 1944 was inapplicable. The relevant assessable value was the transaction price charged on sale from the assessee to the distributor under Section 4, and the distributor's later free distribution to doctors did not affect valuation. The position was treated as settled by binding precedent in the assessee's own case.

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Issues: Whether physician samples cleared to a distributor for free distribution to doctors, with the pack marked "not for sale" and without MRP, are liable to valuation under Section 4A of the Central Excise Act, 1944 or under Section 4 of the Central Excise Act, 1944.

Analysis: The goods were cleared as physician samples expressly marked "not for sale". In such a case, the goods were not meant for retail sale and no MRP was affixed, so valuation under Section 4A was inapplicable. The relevant taxable event was the sale from the assessee to the distributor, and the price charged in that transaction constituted the proper basis for valuation. The subsequent free distribution by the distributor to doctors was immaterial to the valuation of the excisable goods. The issue was treated as settled by the binding precedent already rendered in the assessee's own case.

Conclusion: Valuation under Section 4A was not applicable; the goods were required to be valued under Section 4 on transaction value, in favour of the assessee.

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