Distinct packing requirement defeats clinical sample exemption where medicine samples are packed like commercial packs.

Clinical samples of medicines were not eligible for exemption under Notification No. 48/77-C.E. because the exemption required the samples to be packed distinctly from commercial packs. Where clinical samples are packed identically to saleable packs, with only minor differences such as a physician-sample legend, the distinct-packing condition is not satisfied and the exemption fails. The Tribunal followed an earlier interpretation of the same notification and applied it to the facts before it, resulting in rejection of the claim for exemption.

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Issues: Whether clinical samples of medicines were entitled to exemption under Notification No. 48/77-C.E. when they were packed identically with commercial packs and were not packed distinctly.

Analysis: The appellants manufactured medicines falling under Chapter 30 of the Central Excise Tariff Act, 1985 and claimed exemption for clinical samples under Notification No. 48/77-C.E. The Tribunal noted that the same question had already been decided in an earlier case interpreting the very same notification. That decision held that where clinical samples and commercial packs are packed identically, with only minor differences such as the legend that they are physician samples not to be sold, the samples do not satisfy the requirement of being packed distinctly from commercial packs. The earlier ruling was followed as fully applicable to the present facts.

Conclusion: The clinical samples were not eligible for exemption under Notification No. 48/77-C.E. and the appeal failed.

Ratio Decidendi: For exemption under the notification, clinical samples must be packed distinctly from commercial packs; identical packing defeats the claim to exemption.

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