TaxTMI 
TaxTMI 
2024 (7) TMI 302
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....ution to physician as samples (for which no MRP was affixed). During the period from July 2010 to December 2010, for the regular clearances the appellant had adopted valuation under Section 4A of Central Excise Act, 1944 and for products cleared physician samples, the appellant adopted the transaction value under Section 4 of Central Excise Act, 1944 for payment of duty. The department was of the view that the products though physician samples also should be assessed under Section 4A of the Central Excise Act 1944. Show cause notice was issued proposing to demand the differential duty along with interest and also imposed penalties. After due process of law, the original authority confirmed the demand and imposed duty along with interest and....
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....on had been received by the assessee or the distributors from a doctor or concerned to whom free distribution of sample packs had been made. Further there was no allegation in the show cause notice that the price at which the goods were sold by the assessee to the distributors was not sole consideration. In fact, the genuineness of the price at which the physician samples were sold by the assessee to the distributors was not even doubted. It is only on the ground that the goods were not actually sold by the distributors to the physicians, which was the ground on which it was contended that the case was not covered under Section 4(1)(a). The CESTAT, therefore, in our opinion, has gone beyond the Show Cause Notice and on this ground alone, th....
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....able on such goods. (2) The provisions of this section shall not apply in respect of any excisable goods for which a tariff value has been fixed under sub-section (2) of section 3. (3) For the purpose of this section, - (a) "assessee" means the person who is liable to pay the duty of excise under this Act and includes his agent; (b) persons shall be deemed to be "related" if - (i) they are inter-connected undertakings; (ii) they are relatives; (iii) amongst them the buyer is a relative and distributor of the assessee, or a sub-distributor of such distributor; or (iv) they are so associated that they have interest, directly or indirectly, in the business of each other; ....
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....ction value which is to be determined and on which excise duty is payable. 10. As mentioned above, the assessee had put up the defence that since physician samples were not meant for sale by distributors but were to be given free of cost to the physicians, the assessee had charged lesser price. This statement of the assessee had not been doubted. The only reason in the show cause notice given was that since the 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 ....