Declared retail price valuation under Notification No. 161/66 applies where medicines are sold at the printed retail price.

Notification No. 161/66 allows patents and proprietary medicines to be assessed on the declared retail price after a 25% discount, provided the price list reflects the price at which the medicines are ordinarily sold to consumers. Where the retail price is clearly specified, prominently printed, and the goods are sold at that declared price, the benefit of the notification applies. On those facts, denial of the valuation benefit is not sustainable and the exemption is available.

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Issues: Whether medicines were entitled to valuation under Notification No. 161/66 on the basis of the declared retail price with 25% discount where the retail price was specified and the goods were sold at the declared price.

Analysis: Notification No. 161/66 permits assessment of patents and proprietary medicines on the basis of the retail price after allowing a 25% discount, subject to the condition that the price list reflects the price at which the medicines are ordinarily sold to consumers. The retail price of the goods was declared and prominently printed, and there was no dispute that the price was specified or that the goods were sold at the declared price. In such circumstances, the basis adopted by the department for denying the benefit was not sustainable.

Conclusion: The exemption under Notification No. 161/66 was rightly allowed and the Revenue's objection to the valuation method failed.

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