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
sample' itself implies that these samples are representative of the whole i.e. 'such goods' sold commercially. The purpose of physicians samples ... assessee represents to the physicians that the product same physical and chemical properties, composition, potency, etc. Thus, the physicians samples cleared for free distribution
price.
However, since these are physician samples, the distributors
in turn, supplied these samples to the physicians free of
cost. Apart from above, the assessee ... distribution to the physicians free of cost
and that would mean that distributors did not sell the
physician samples, it was not understood
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
instant case, the assessee claimed expenditure
on distribution of physicians samples under sec 37 general
head. In view of the principles settled by this court ... this method
the purpose is achieved. In such cases giving physicians
samples for a reasonable period is essential to the business
of manufacture and sales
said case, the assessee-company claimed the expenditure on distribution of physicians samples as expenditure under s. 37 of the IT Act, 1961. While ... that case, the Court held that the expenditure incurred on physicians samples amounts to an expenditure on advertisement, publicity or sales promotion falling within
Central Excise Tariff Act, 1985 . They were clearing the physicians samples of the said ayurvedic medicines on payment of duty at the assessable value equivalent ... samples were not liable to any excise duty as these were neither marketed nor marketable; the samples were nothing but advertisement material; cost of samples
samples were not liable to any excise duty as these were neither marketed nor marketable; the samples were nothing but advertisement material; cost of samples ... pendency of dispute with regard to the assessable value of the physicians samples of P.P. Ayurvedic Medicines, subject-matter of show cause notices dated
said case, the assessee-company claimed the expenditure on distribution of physicians' samples as expenditure under s. 37 of the IT Act, 1961. While ... that case, the Court held that the expenditure incurred on physicians' samples amounts to an expenditure on advertisement, publicity or sales promotion falling within
that part of the production which was sold as physician's samples had to be valued.
7.4. The Assessee, however, paid duty ... physician's samples on the basis of assessable value arrived at, on a pro-rata basis, which was a ratio of the sale price
