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2023 (7) TMI 301 - AT - Central ExciseMethod of Valuation - Section 4 or 4A of the Central Excise Act, 1944? - medicaments supplied to institutional buyers like Indian Railways, Government Hospitals, BHEL for their exclusive use - HELD THAT - The issue is not under dispute that whether the medicament supplied to institutional buyers i.e. Indian Railways, Government Hospitals, BHEL for their exclusive use should be valued under Section 4 and Section 4A of Central Excise Act, 1944 - It is found that since the supplies are not for retails sale but for exclusive used by the government institutes therefore, since the goods are not meant for retail sale nor it is sold to retail buyers. The condition of the Revenue is that value under Section 4A of Central Excise Act, 1944 has no legs to stand. This issue, in the appellant s own case has been considered by this Tribunal JB CHEMICALS PHARMACEUTICALS LTD, PARMESHWAR B BANG VERSUS C.C.E. S.T. -DAMAN 2023 (1) TMI 588 - CESTAT AHMEDABAD wherein it was held that in the appellant s case value of goods is clearly governed by Section 4 of Central Excise Act and not under Section 4A therefore, the impugned order is not sustainable. The issue stand settled in view of the above decision - appeal allowed.
Issues Involved:
1. Whether the medicaments supplied to institutional buyers like Indian Railways, Government Hospitals, BHEL for their exclusive use are subjected to assessment under Section 4 or 4A of the Central Excise Act, 1944. Summary: Issue 1: Assessment of Medicaments Supplied to Institutional Buyers The primary issue in this case is whether the medicaments supplied to institutional buyers such as Indian Railways, Government Hospitals, and BHEL for their exclusive use should be assessed under Section 4 or 4A of the Central Excise Act, 1944. The appellant argued that this issue has been previously considered in various judgments, including decisions in their own case on identical facts, where it was held that medicaments supplied to institutional buyers are governed by Section 4 of the Central Excise Act, 1944, and duty is payable on transaction value. The appellant relied on several decisions, including:
The respondent reiterated the findings of the impugned order, arguing that the valuation should be under Section 4A of the Central Excise Act, 1944. The Tribunal, after considering the submissions and perusing the records, found that the supplies in question were not for retail sale but for exclusive use by government institutions. Since the goods were not meant for retail sale and no MRP was printed on the packages, the valuation under Section 4A of the Central Excise Act, 1944, was not applicable. This position was supported by previous decisions, including the appellant's own case and the case of Medley Pharmaceuticals Ltd., where it was consistently held that the valuation of medicaments supplied to government hospitals and institutional buyers should be governed by Section 4 and not Section 4A. Based on the consistent view taken by the Tribunal in similar cases, the impugned orders were set aside, and the appeals were allowed. The Tribunal concluded that the issue is no longer res integra and affirmed that the value of goods supplied to institutional buyers is governed by Section 4 of the Central Excise Act, 1944. (Pronounced in the open court on 07.07.2023)
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