9911796707
TMI Blog2004 (12) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... e on a manufacturer of P and P medicament on the grounds that the appellants have cleared their finished products namely medicaments packed in commercial sale pack on payment of duty at prices charged from their wholesale dealers. However, physician samples of the same brand of medicament were cleared by the appellants in different i.e. smaller quantity packing, by paying duty on such physician sample packs, at prices lower than the pro rata price at which duty were paid for the packages removed as commercial medicament for sale to the wholesale dealers. (b) The physician samples in similar packs so removed were also sold to the wholesale dealers, but the prices were much lower when compared the pro rata price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omparable goods were not known. It was found that the notices arrived at an assessable value under Rule 6 (b)(ii) which was not correct inasmuch as value was required to be determined under Rule 6 only when the value of such goods could not be determined under Rules 4 and 5 of the Valuation Rules, 1975 and in this case the value of physician samples was determinable under Rule 4 of the Valuation Rules by applying pro rata value. This finding of the Commissioner to apply Rule 4 of the Valuation Rules cannot be upheld for following reasons: (i) for medicaments, there is a specific Chapter Note which stipulates that conversion of powder into tablets or capsule, labelling or relabelling containers intended for con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oked only if there is material to support the ingredients required to invoke that clause. In this facts of this case, the allegation of suppression of facts etc cannot be sustained as the fact that the appellant was manufacturing physician samples was fully known to the authorities and was declared, as duty paying documents and clearance documents were regularly filed and the unit was audited from time to time. It was open to the authorities to seek clarification of the declarations made in list filed under rule 173C and to seek the costing details. That not having been done and it is now well settled that some positive act has to be found on part of the assessee in keeping away material evidence which would have enabled the assessing offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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