2008 (9) TMI 360 - AT - Central Excise

Valuation - whether the physician s samples which are being sold by the respondents at a price, are required to be cleared on payment of duty at a value arrived at on the basis of the price of the comparable goods i.e. regular packs. - We find that Commissioner (Appeals) has held that samples are not being cleared for free distribution but are being sold at factory gate and the wholesale price available at factory gate. In such scenario, the resort to the Valuation Rules, 1975 cannot be made. - We, accordingly, reject the appeals filed by Revenue.

Summary

The Appellate Tribunal CESTAT, Ahmedabad ruled that physician's samples sold by the respondents are not required to be cleared on payment of duty based on the price of regular packs. The samples are sold at factory gate and the wholesale price, so Valuation Rules, 1975 do not apply. The Tribunal rejected the appeals filed by Revenue.