Distinct packing for physician samples supported exemption under the excise notification and defeated the duty demand.

Physician samples were treated as eligible for exemption under Notification No. 48/77-C.E. because their packing was found to be distinctly different from regular trade packs. The Commissioner compared the sample packs with the trade packs and recorded that the samples were marked "physician samples, not to be sold," with no material showing the two packings were identical. On that factual basis, the demand was dropped and the assessee was treated as entitled to the exemption. The operative point is that distinct packing, supported by the record, satisfied the notification condition.

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Issues: Whether physician samples were packed in a form distinctly different from regular trade packing so as to qualify for exemption under Notification No. 48/77-C.E. dated 1-4-1977.

Analysis: The Commissioner had examined the physician sample packs and the regular trade packs and recorded a finding that the sample packs were distinctly different and were marked as "physician samples, not to be sold". The record did not show that the two types of packing were identical, and the distinction noted by the Commissioner was supported by the material on record. On that basis, the demand proceedings were dropped and the assessee was held entitled to the exemption.

Conclusion: The physician samples satisfied the condition of being packed distinctly differently from regular trade packs, and the exemption under the notification was available to the assessee.

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