2005 (5) TMI 380 - AT - Central Excise

Summary

Issues: Interpretation of Notification No. 48/77 regarding exemption for physician's samples of medicines.

Analysis:
The case involved a dispute regarding the interpretation of Notification No. 48/77, dated 1-4-1977, which exempts physician's samples of medicines. The appellants claimed the benefit under the notification for physician's samples, but the Revenue objected, stating that the samples were stamped with "Physician's sample, not for sale," which did not meet the conditions of the notification. The lower authorities confirmed a duty demand of Rs. 17,671.50 against the appellants based on this objection.

Upon review, the Tribunal found that condition 3 of the notification only required the words "physician's sample, not to be sold" to be marked clearly and conspicuously on the label. The Tribunal noted that the condition did not specify that the marking should be done in a particular manner, such as printing or rubber stamping. The Tribunal disagreed with the lower authorities' requirement for proof of actual delivery as physician's samples, as the notification did not stipulate such a condition regarding end use. Therefore, the Tribunal concluded that the Revenue's reasoning lacked merit, set aside the impugned order, and allowed the appeal.

In summary, the Tribunal's decision hinged on the interpretation of the notification's conditions, emphasizing that the marking requirement for physician's samples did not specify a particular method and did not necessitate proof of actual delivery as physician's samples. Consequently, the Tribunal ruled in favor of the appellants, overturning the duty demand imposed by the Revenue.