TaxTMI 
TaxTMI 
2016 (7) TMI 555
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....ical goods and in order to promote their business, is manufacturing and clearing physician samples. For discharging central excise duty on such physician samples, the appellant arrives at valuation on the pro rata basis of the sale pack cleared by them. There is no dispute as to discharge of central excise duty on the sale pack as also on the physician samples pack on pro rata basis but the dispute is related to non-inclusion of the value of extra packing charges which is in the form of catch covers . The lower authorities after following due process of law, confirmed the demands along with interest and also imposed penalties. The first appellate authority concurred with the view of the adjudicating authority. 3. The learned counsel submit....
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....ore than one reason. 6. As already recorded herein above, the issue is regarding valuation of physician samples. The allegation of the Revenue and the findings of the lower authorities are that the physician samples which are cleared in catch covers, and the value/cost of such catch covers needs to be included in the value of physician samples on which duty liability is discharged. It is recorded that the appellant discharges the appropriate central excise duty on physician samples on the pro rata value on the sale pack. 7. Firstly, we find that the appellant s claim before the lower authorities that the value of the catch covers is already included in the value of the sale pack when cleared for home consumption is not controverted. Secon....
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....as held as under:- "8. In these cases the physicians samples which are given free of cost are clearly comparable with the goods that are manufactured by the assessee and sold in the market as the two goods are identical. In fact out of the same lot manufactured some are distributed as samples. Therefore, even while exercising his power under Rule 7 the proper officer can choose any of the aforesaid two methods prescribed in Rule 6(b) of the Rules. No doubt it is the discretion of the proper officer to determine the value as it is his best judgment which he has to exercise. However, the Rule also mentions that while exercising his best judgment, he has option to give regard to any of the methods, prescribed in the earlier rules. The words ....