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
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
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
Question No. 2 :
3. For the year 1979-80, the assessee distributed samples produced by it worth Rs. 1,59,996 among various doctors with ... reasons, it has to be held that the expenditure on physicians samples distributed to doctors is outside the scope
valuation of physicians free samples because usage of the term physicians sample' itself implies that these samples are representative of the whole ... medicines based on the free samples supplied by the assessee. The fact that the physicians samples may be distributed in a different pack
samples to doctors but no expenditure was shown to have been incurred in the manufacture of those samples. The assessee claimed that the free samples ... samples, Mr. Mistry submitted that the assessee in the instant case, since inception had claimed that the samples were distributed to medical practitioners
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
Government proposed to
distribute 55,000 seedlings and samplings distributed to 134 farmers.
The distributed samples transported by beneficiaries on their own and
samplings planted ... farmers in Pichanur cluster villages.
After receiving application from farmers, the samplings distributed and
transported. On verification, it was found the samplings transported
samples to doctors but no expenditure was shown to have been incurred in the manufacture of those samples. The assessee claimed that the free samples ... sample, Mr. Mistry submitted that the assessee in the instant case, since inception had claimed that the samples were distributed to the medical practitioners
