9911796707
TMI Blog1998 (9) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... ble goods such as medicines of various types classifiable under the erstwhile Tariff Item 14E till February, 1986 and thereafter under Chapter Heading 3003.19. 3. Learned Counsel submitted that the appellants filed classification lists from time to time declaring their product under the aforesaid sub-heading and claiming exemption from payment of excise duty on clearances intended for supply as free samples under Notification No. 48/77-C.E., dated 1-4-1977. The clinical samples were to be supplied free to hospitals, clinic etc. The said C/Lists were approved by the jurisdictional Asstt. Collector unconditionally. 4. Learned Counsel further submitted that the order of the Additional Collector is without application of mind and in gross v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in such dealers areas. 6. He submitted that this is fully corroborated by the statement of Shri C.V. Shivaraman recorded on 11-4-1989 u/s 14 of CESA, 1944, who inter alia, deposed that the agreement dated 15-7-1983 entered into with the dealers who were agreeable, to bear the part of advertising and sales promotion, including cost of raw and packing material expenses used in the manufacture of samples distributed in dealers area. The debit notes were issued to some of the dealers who entered into such agreement dated 15-7-1983 with the company and the value of the debit notes were recovered from the distributors on whom it was raised. Notification No. 48/77 clearly stipulates the condition that the samples packed must be in a form disti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluded in the assessable value and chargeable to duty. 10. He further submitted that the assessee, having suppressed the facts wilfully the extended period beyond six months is correctly applicable. 11. We have considered the above submissions. We observe that the appellants have claimed the benefit of exemption Notification in respect of free samples supplied for medical practioners, hospitals, clinics etc. It was therefore, their responsibility to show that actually the samples of medicines were supplied free for the intended purpose, in the face of the charge, that they were not supplied free but the appellants have failed to substantiate their claim for entitlement to the Notification. 12. The Department has on the other hand, bee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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