TaxTMI 
TaxTMI 
Valuation u/r 4 of CE valuation rule
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....aluation u/r 4 of CE valuation rule<br> Query (Issue) Started By: - Nitin Bhisikar Dated:- 12-9-2009 Last Reply Date:- 14-9-2009 Central Excise<br>Got 1 Reply<br>Central Excise<br>Valuation under rule 4 of CE valuation rule- Manufacturer of medicine sold free sample to medical practitioner throught its medical representative. Here time of delivery is other than time of removal of goods. As per rul....
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....e 4 adustment is required with reference to comparable goods sold nearest to time of removal. My Query is 1) Which adjustment is required in the present case if article is specified in section 4A. 2) Which adjustment is required in the present case if article is not specified in section 4A. 3) Which adjustment is necessary if it is not free sample but sale to buyer under the promotional scheme if ....
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....article specified in section 4A 4) Which adjustment is necessary if it is not free sample but sale to buyer under the promotional scheme if article not specified in section 4A. Here the difference in time because material is removed from factory but never reaches to the buyer immediately because buyer is not known at the time of removal. Material may reach to buyer through medical practioner or me....
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....dical representative. Reply By Mukesh Kumar: The Reply: I believe you are not clear about the facts. Why you are trying to distinguish the term delivery and removal artificially. When you supply the goods (medicine) to doctors, either the removal process is complete when you supply the material to the doctors or you may treat the doctors as consignment agent or depot. If you treat the doctors as ....
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....consignment agent or depot or stocking than the situation may be different where as question of transaction value u/s 4 is concerned. Where you supply samples to doctors for the purpose of either marketing or testing of your goods, mere free samples can not make them as consignment agent. I believe that these grounds would help you to ascertain the correct position and decide the issue correctly.<....
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