TaxTMI 
TaxTMI 
2004 (12) TMI 225
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....f the Central Excise Valuation Rules, 1975. It needs no mention that the value of regular packs of medicines was determined under Section 4 of the Central Excise Act and that of the physicians samples under the Valuation Rules as the latter are supplied free. During the said period the appellants filed price declaration with the department in respect of physician samples giving the following particulars: description, tariff classification, cost of production, profit that could have been normally earned by assessee on sale of such goods and value declared under Section 4. The department did not question the basis on which the value was arrived. 2. On 20th July 2000, however, a show cause notice was issued asking the appellants to show cau....
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....Section 11AC read with Rule 173Q and also for good measure imposed penalties on the officers of the company under Rule 209A, demanded interest under Section 11AB etc. Hence these appeals. 5. Heard both sides. 6. The learned Advocate Shri Manoj Sanklecha took us through the Valuation Rules. 1975 and argued how Rule 4 is inapplicable. The Rule itself during the relevant period read thus: "The value of any excisable goods shall be based on the value of such goods is sold by the assessee for delivery at any other time nearest to the time of removal of goods under assessment, subject, if necessary, to such adjustment on account of the difference in the dates of delivery of such goods and of the excisable goods under assessment as may appea....
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....alue of trade packs is erroneous. Finally he argued that the value as determined by the appellants based on a chartered accountant's certificate is correct. 7. On the limitation aspect, he argued that the department was aware of the method adopted by the appellants in arriving at the value as the appellants have been filing declaration under Rule 173C of the Central Excise Rules during the relevant period. If such a declaration is found wanting in detail, the department could have asked the appellants to furnish further information. The department cannot contend that the declaration lacked information necessary to determine the value and therefore there was suppression. Section 11AC is not applicable to the clearances made prior to S....
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....comparable with the regular trade packs and therefore the value of the trade packs, after giving suitable adjustments can be adopted for the purpose of determining the value of physician samples. We, therefore, following the ratio of this decision, agree with the appellants that value cannot be determined under Rule 4. 10. Having said so, we have to examine the method adopted by the Commissioner in the impugned order. Even though he cited Rule 4 as the correct rule, he determined the value as per Rule 6(b)(i) only. He gave suitable adjustments for the quantity and arrived at the value. The Rule may be wrong but the method adopted by the Commissioner cannot be faulted. For a moment if we substitute Rule 4 in the impugned order with Rule 6....