doctors were given the samples only thereafter. Therefore, the normal inference
would be that the samples are distributed also for promoting sales. Shri Dastur ... stock of medicine is not sample, but all the sample is medicine. Nobody says that samples are produced separately. They are part of the general
such free samples. The assessee submitted that the
assessee has purchased samples worth Rs. 126.75 lacs for its free
distribution. The assessee submitted copies ... field
staff for their necessary distribution to doctors . It was submitted that goods
purchased for distribution to Doctors as samples are manufactured as
"Physician
Tribunal is perverse in
allowing deduction representing sample distribution
expenses in terms of Section 37(1) of the Act; in the
absence of any sale ... claimed expenditure of
`15,45,170/- on account of sample distribution. In the absence of
evidence of sample distribution on account of foreign shipment
adopted by the assessee to distribute samples to
doctors/medical practitioners. It was submitted that the sample so
distributed to the doctors/medical practitioners ... such as product name,
doctor name, Quantity of samples given, Date of supply of free
samples distributed to Healthcare practitioners
utilised in manufacturing the articles "for sale". Since these samples were distributed free of charge, the Sales Tax Officer found that the goods ... opinion of the Sales Tax Officer, the applicant-assessee, by distributing these samples freely committed a breach of the conditions embodied in the certificate
that the major
expenses incurred were on sales promotion, conveyance, travelling, sample distribution,
royalty & marketing. Regarding whether the assessee is a trading concern ... business, penetration in the market was
necessary and as such sample distribution and business promotion was the key
during the year. Sales had just begun
disallowing on adhoc basic 75%
of the expenditure incurred towards free samples distributed amounting to
Rs.118,503,996/- by treating it as non business ... distributed and the details of which are also placed at pages 806 to 1014 of the paper
book. He submitted that distribution of free samples
closing stock did include quantities and values of
samples, but since the samples were distributed free of cost,
these were reflected as part and parcel ... whom such free samples were
distributed, furnished only region wise samples distributed to
medical representatives, and no details of physicians/doctors
were given
consideration and decision:-
"Whether Physician samples manufactured and distributed as
free samples have to be assessed on the basis of cost of manufacture
plus ... Drugs Rules. It is
contended that every drug intended for distribution as physicians
sample while complying with the labeling provisions under Drugs and
Cosmetic Rules
Learened counsel for the assessee submitted that the
physician's samples were distributed only to doctors and
therefore, the expenditure incurred thereon could ... held that the expenditure on
physicians' samples distributed to doctors is outside the
scope of sub-section (3A) of section
