Physician's samples valuation must follow Rule 4, not section 4A, under central excise law.

Physician's samples were held not to be valued under section 4A of the Central Excise Act, 1944, because the Tribunal followed its earlier precedent that such samples do not attract MRP-based valuation. The correct method is valuation under Rule 4 of the Central Excise Rules, 2000, and a demand raised on a section 4A footing could not be sustained. The impugned orders were therefore set aside and the appeals were allowed with consequential relief.

---

---

Issues: Whether physician's samples were liable to Central Excise duty on the basis of section 4A valuation, or were required to be valued under Rule 4 of the Central Excise Rules, 2000.

Analysis: The Tribunal followed its earlier decision holding that valuation of physician's samples is not to be made under section 4A of the Central Excise Act, 1944. It accepted that the correct method is valuation under Rule 4 of the Central Excise Rules, 2000, and treated the issue as settled by precedent. On that basis, the demand raised on the section 4A footing could not be sustained.

Conclusion: The physician's samples were not liable to be assessed under section 4A of the Central Excise Act, 1944.

Final Conclusion: The impugned orders were set aside and the appeals were allowed with consequential relief.

Ratio Decidendi: Physician's samples are not to be valued under section 4A of the Central Excise Act, 1944, and must be assessed under Rule 4 of the Central Excise Rules, 2000.

---