1998 (9) TMI 298 - AT - Central Excise

Medicines - Samples - Physician s samples, for availing benefit of Notification Nos. 48/77-C.E. and 170/70-C.E.

Summary

Issues:
- Benefit of Notification Nos. 48/77 and 170/70 availability to physical samples of P and P medicines.

Analysis:
The judgment from the Appellate Tribunal CEGAT, New Delhi revolves around five appeals stemming from a common Order-in-Appeal passed by the Collector (Appeals). The central issue in these appeals is whether the benefit of Notification Nos. 48/77 and 170/70 was applicable to the physical samples of P and P medicines. The Collector (Appeals) based his decision on a prior order, emphasizing that the samples should be packed distinctly different from regular trade packing and clearly marked as "Physician's samples, not to be sold." The Appellants argued that they had met the notification conditions by ensuring the samples were packed differently and marked appropriately to prevent misuse. However, the ld. SDR referenced a Tribunal decision that stressed the need for the packing to be distinctly different from regular trade packing beyond just the marking. The Tribunal had previously ruled that mere inscriptions were insufficient, and the packing itself should be easily distinguishable from trade packing. This principle was reiterated in subsequent cases as well.

In their analysis, the Tribunal concurred with the ld. SDR, noting that the issue at hand aligned with the precedent set by the Indian Drugs and Pharmaceuticals Ltd. case. The conditions in the notifications required the samples to be packed distinctly different from regular trade packing and clearly marked as "Physician's sample, not to be sold." The Appellants had only fulfilled the marking requirement and failed to meet the first part of the condition regarding distinctive packing. The Tribunal also highlighted that even additional markings like extra white lines did not suffice to differentiate the sample packing from trade packing, as established in previous rulings. Consequently, the Tribunal found no merit in the appeals and dismissed them based on the established legal principles and precedents.

This detailed analysis of the judgment showcases the Tribunal's thorough examination of the notification conditions, the parties' arguments, and the application of legal precedents to arrive at a well-reasoned decision regarding the benefit eligibility for physical samples of P and P medicines under the specified notifications.