Nair
The issue involved in the present appeals is valuation of physician samples manufactured and supplied either on loan license basis or on job-work ... physician samples and they themselves supplying free sample in the market. In the present case, all the three appellants are not supplying physician samples free
payment of duty at prices charged from their wholesale dealers. However, physician samples of the same brand of medicament were cleared by the appellants ... different i.e. smaller quantity packing, by paying duty on such physician sample packs, at prices lower than the pro rata price at which duty
them. Apart from the regular medicaments, the appellants are also manufacturing physician samples. In some of the cases, such physician samples are being manufactured ... dispute in the present appeals relate to the valuation of such physician samples.
3. As we find that there are two types of physician samples
physicians' samples would be 115% of the cost of production of such samples.
2. All the appeals pertained to valuation of Physician Samples ... physician samples. Under Drug Price Control order the samples are forbidden from being sold. There is no dispute that the samples in question are distributed
consideration by this Tribunal is as to whether supply of physician samples of medicine should attract the valuation Provisions contained in Section ... herein below:-
13.?As contended by the DR that as the physician samples are made free of sale and the medicaments are governed
expenses incurred on physicians sample as claimed".
2. "On the facts and in the circumstances of the case ... erred in deleting the disallowance of 25% of expenses incurred on
physicians samples ignoring the facts that the assessee had not been able to
substantiate
following question of law for our
consideration and decision:-
"Whether Physician samples manufactured and distributed as
free samples have to be assessed ... Cheryl Laboratories (P) Ltd., held that the value of
Physician samples should be determined in accordance with the
principle laid down in Rule
would also not apply as it dealt with physician samples offered free.
3.2. The learned counsel further argues that application of Rule ... this Tribunal in the case of Cadila Pharmaceuticals held that the physician samples offered free-of-cost can be valued on the basis of Section
issue in the present appeals is regarding valuation of the
'physician samples' manufactured by the Appellant and sold on principal
to principal basis ... Srushti Pharmaceuticals Pvt., Ltd, the
Appellant is manufacturing 'physicians samples' under 'principal to
principal' basis for other 'pharmaceutical manufacturers/brand
manufacture and marketing of P
& P medicaments and Bulk Drugs. Physician samples of such
medicaments, distributed free ... cost to physicians/ doctors/ hospitals
for the promotion of the product in market, are also manufactured by
the appellant. These physician samples are different from
