2018 (11) TMI 1380

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....ra, Dy. Commr. (AR) ORDER Per: Raju These appeals have been filed by M/s Vapi Organic Chemicals Pvt. Ltd., Shri R.K. Parmar and Shri HG Patel against confirmation of demand of duty on physician samples and imposition of penalties. 2. We find that Revenue had demanded Excise Duty in respect of Physician samples manufactured by the appellant on job work basis for other parties. The said physi....

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....ice given was that the since physician samples were given free of cost by the distributors and no price was charged, the case was not covered by the provisions of Section 4(1)(a) of the Act. This is clearly fallacious and wrong reason. The transaction in question was between the assessee and the distributors. Between them, admittedly, price was charged by the assessee from the distributors. What u....

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....he Revenue fail and are hereby dismissed." In view of the aforesaid decision of Hon'ble Apex Court, the assessment of physician sample sold by the appellant to others who may be distributing the same free of cost are to be assessed under Section 4(1)(a) of the Central Excise Act, 1944. Thus, the demand of duty of value arrived at on the basis of MRP is not sustainable. 5. In the case of Omni P....

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....e of cost, therefore no transaction value was available. It is an admitted fact that P&P medicaments are to be cleared on MRP basis value therefore on those cases it was held as valuation of physician samples is to be on the basis of MRP basis under Section 4A of Act. 7. In this case, it is clear that the appellant is not clearing these physician samples to the Physician! Doctor free of cost bu....