Valuation of free samples: MRP-assessed goods must be valued under Rule 4 using Section 4A deemed price for assessment. Free samples of products notified for MRP assessment are to be valued under Rule 4 of the Central Excise Valuation Rules, applying the deemed price under Section 4A when a normal transaction price is unavailable. This valuation principle, endorsed by CESTAT decisions and Board circulars, requires taking the Section 4A deemed value for similar goods as the reference for free physician and other promotional samples, subject to adjustments for pack size and quantity.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Valuation of free samples: MRP-assessed goods must be valued under Rule 4 using Section 4A deemed price for assessment.
Free samples of products notified for MRP assessment are to be valued under Rule 4 of the Central Excise Valuation Rules, applying the deemed price under Section 4A when a normal transaction price is unavailable. This valuation principle, endorsed by CESTAT decisions and Board circulars, requires taking the Section 4A deemed value for similar goods as the reference for free physician and other promotional samples, subject to adjustments for pack size and quantity.
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