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1 - 2 of 2 (0.16 seconds)Bausch & Lomb Eyecare ( India) Pvt. Ltd vs C.C.E., Jaipur on 10 November, 2016
10. After hearing both the sides, we find that short question required to be decided in the present appeal is as to whether the value of Re. 1/- adopted by the appellant in respect of the small bottles of 60 ml of Lens Care Solution is the correct assessable or the value has to be raised, by adopting the value of the full commercial bottle of 120 ml. We note that an identical issue was considered by the Tribunal in the case of Sun Pharmaceutical Industries Versus Commissioner of C. Ex., Surat-II reported in 2005 (183) E.L.T. 42 (Tri.- Mumbai) = 2005 TIOL 123 CESTAT - MUM and it was held that inasmuch as the smaller packs were being sold by the assessee, though they were meant for further free distribution by the distributors, the price at which the same were being sold represents the transaction value and is required to be adopted as the assessable value in terms of the provisions of Section 4. We further find that on appeal against the said decision by the Revenue, the Honble Supreme Court in the case of Commissioner of Central Ex. & Cus, Surat Versus Sun Pharmaceuticals Inds. Ltd. reported in 2015 (326) E.L.T 3 (S.C.) observed that in the absence of any allegation made by the Revenue that the price at which the samples meant for free distribution were being sold by the assessee to distributors was not the sole consideration, such consideration fulfills the requirement of Section 4 (1)(a) of Central Excise Act, 1944. The fact that physician samples were further given free of cost by the distributors as no price was charged by the distributors, the case cannot be held to be not covered by the provisions of Section 4 (1) (a) of the Act. The said argument of the Revenue would be fallacious and wrong reason. The transaction is between the assessee and their distributors at the price charged by the assessee from the distributors and what the distributors ultimately did with these goods is extraneous and cannot be the relevant consideration to determine the valuation of the excisable goods.
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