1995 (8) TMI 162 - AT - Central Excise

Summary

Issues:
Assessable value under Notification No. 161/66 permitting a discount of 25% from the retail price of medicines.

Detailed Analysis:

The Revenue Appeal challenged Order-in-Appeal No. 261/83, which concerned the assessable value under Notification No. 161/66 allowing a 25% discount on the retail price of medicines. The Respondents declared the price of their goods at Rs. 3 per strip of 36 Tablets during a specific period, with an assessable value of Rs. 2.06 per strip determined by the Department after applying the discount as per the notification. The Respondents predominantly supplied their products wholesale to a related firm, where no discount was applied in about 70% of the sales. The issue revolved around the interpretation of the notification and the application of discounts in wholesale transactions.

The Respondents, although absent during the proceedings, submitted Cross-objections supporting the Order of the Collector (Appeals). They argued that the Revenue's interpretation of Notification No. 161/66 was not justified. The notification exempted Patents and Proprietary medicines from excise duty in excess of the duty calculated based on specified discounts on retail prices. The Respondents contended that they complied with the requirements by submitting wholesale and retail price lists, demonstrating that their goods were sold at or below the specified retail price, thus qualifying for the exemption.

The Tribunal reviewed the case records and Notification No. 161/66, which exempted medicines from excise duty based on specified discounts on retail prices. It was noted that there was no dispute regarding the retail price, specification of prices, or the actual selling prices. As long as the goods were sold at the declared retail prices, the benefit of the exemption under the notification could not be denied. The Tribunal found no flaws in the Order of the Collector (Appeals) and consequently dismissed the Revenue Appeal, upholding the impugned order. The Cross-objections raised by the Respondents were also disposed of accordingly.

In conclusion, the Tribunal affirmed that the Respondents met the conditions set forth in Notification No. 161/66 by selling their goods at or below the specified retail prices, thereby qualifying for the exemption from excise duty as per the notification's provisions. The judgment emphasized the importance of adhering to the requirements outlined in such notifications to avail of the benefits provided.