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
2005. It was also noticed that the assessable value of physician samples was lower than the assessable value of the same medicaments cleared in trade ... enquiry, the appellants submitted that they were not clearing the physician samples for free distribution to the doctors but are selling to other companies
appeal against the impugned order confirming the demand on account of physician samples cleared by them are to be valued as per Section ... clearing these physician samples to the Physician/Doctor free of cost but the appellant is clearing these physician samples on transaction value arrived at after
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
they have not arrived at correct assessable value in respect of physician samples cleared by them. As the assessee is clearing the physician samples ... abatement. It was also noticed that the assessee was also clearing physician samples of the same product and discharging Central Excise duty thereon by arriving
issue involved in this appeal is in respect of valuation of physician samples.
3. The appellants filed a declaration in respect of physician samples claiming ... issued rejecting the price declaration and the adjudicating authority held that physician samples are to be assessed under Section 4 of the Central Excise
rejected.
It is alleged that during inspection some
expired medicines and physician samples were seized
from the business premises of M/S Agrawal Medicine
stores ... selling the expiry
medicines in the market so far as the physician samples
2
are concerned, they are for charity purposes for being
distributed
trade packs, for the purpose of sale, they were also clearing physician samples to their wholesale distributors, which were meant for further free distribution ... present appeal relates to the valuation of the said physician samples. It is seen that the show cause notice dated 07.03.2008 was issued
drugs in the trade
stock, which were marked as "Physician's Samples not to be sold". The
inventory of these seven kinds ... keeping of those drugs,
which were marked as "Physician's Samples not to be sold", the
accused had committed an offence punishable
petitioners was that they were found
getting in thelr shop physician samples not for sale.
7 3 Having thus heard the petitioners' Counsel
HCGP
