2014 (11) TMI 389 - AT - Central Excise

Valuation of goods - Valuation under Section 4A or Section 4 - clearance of physician samples to brand owners - Held that - samples are not distributed by the appellants free but cleared on receipt of consideration. Hence the excise duty is payable on transaction value - appellants have correctly valued the physician samples cleared by them on transaction value to the brand owner. Therefore, we hold that the appellants are not required to pay duty as per Section 4A of the Central Excise Act, 1944, but they are required to pay duty on transaction value. Accordingly, the impugned order is set aside - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT Mumbai ruled in favor of the appellant in the case of clearance of physician samples to brand owners. The Tribunal held that excise duty is payable on transaction value, not as per Section 4A of the Central Excise Act, 1944. The impugned order was set aside, and the appeal was allowed. (2014 (11) TMI 389 - CESTAT MUMBAI)