2022 (8) TMI 1101 - SCH - Central Excise

Valuation - physician samples were given free of cost by the distributors and not by the manufacturer - Determination of 'transaction value' - HELD THAT - These appeals are disposed off in terms of the judgment rendered by this Court in COMMR. OF CENTRAL EXCISE CUSTOMS, SURAT VERSUS M/S SUN PHARMACEUTICALS INDS. LTD. v ORS. 2015 (12) TMI 670 - SUPREME COURT where it was held that The transaction in question was between the assessee and the distributors. Between them, admittedly, price was charged by the assessee from the distributors. What ultimately distributors did with these goods is extraneous and could not be the relevant consideration to determine the valuation of excisable goods. When we find that price was charged by the assessee from the distributors, the Show Cause Notice is clearly founded on a wrong reason. Application disposed off.

Summary

The Supreme Court of India, with N.V. Ramana, CJI, Krishna Murari, and Hima Kohli, JJ., disposed of the appeals in favor of the assessee based on a previous judgment in Commissioner of Central Excise and Customs, Surat v. Sun Pharmaceuticals Inds. Ltd., 2015 (326) E.L.T. 3 (S.C.). The pending interlocutory application was also disposed of accordingly.