1983 (4) TMI 258

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....anding of the issues, we reproduce below this notification and the clause : Notification No. 161/66, dated 18-10-1966 "In exercise of the powers conferred by rule 8(1) of the Central Excise Rules, 1944 and in supersession of the notification of the Government of India in M.F. (DR & I) No. 39/66-C.E., dated 26-3-1966, the Central Government hereby exempts patents or proprietary medicines falling under item 14E from so much of the duty of excise leviable thereon as is in excess of the duty calculated on the basis of : (i) the value arrived at after allowing a discount of 10 per cent on the prices specified in the price list referred to in para 8 of the Drugs (Prices Control) Order, 1970 issued under Section 3 of the Essential Co....

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.... pro rate price of the formulation plus 5 per cent thereof : Provided that nothing in this paragraph shall apply to any formulation compounded at the premises of the retailer." 3. Exemption Notification No. 161/66-C.E. provided for an ad hoc discount procedure for valuing patent or proprietary medicines for the purpose of assessment of central excise duty. To the manufacturer desiring to avail of the benefit of this notification, it gave two options for valuing the goods - the wholesale price less 10 per cent discount or the retail price less 25 per cent discount. The appellants desired to avail of the benefit of the notification and opted for the second basis of valuation, that is, the retail price less 25 per cent discount. The....

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....tive stated that the Assistant Collector as well as the Appellate Collector had applied their own mind to the facts of the present case and there was nothing to show in their orders that they had relied on the aforesaid tariff ruling. He added that the first proviso to the exemption Notification No. 161/66-C.E. itself provided that the ad hoc discount procedure contained therein was admissible only it the price list represented the price at which the medicines were ordinarily sold to retailers or consumers, as the case may be and since the bulk packs were actually sold in split quantities after the mark up of 5 per cent, it was quite lawful for the Department to add this mark up to the retail prices of bulk packs for arriving at their asses....