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TMI Blog2016 (7) TMI 555X X X X Extracts X X X X X X X X Extracts X X X X ..... Technical ) Shri Vinod Awtani, C.A., for appellant Shri N.N. Prabhudesai, Superintendent (AR), for respondent ORDER Per: M.V. Ravindran This appeal is directed against order-in-appeal No. AT/800/M-III/2006 dated 26.12.2006. 2. The issue involved in this case is regarding valuation of physician samples during the period April 1996 to March 2000. The appellant is a manufacturer of pharmaceutical goods and in order to promote their business, is manufacturing and clearing physician samples. For discharging central excise duty on such physician samples, the appellant arrives at valuation on the pro rata basis of the sale pack cleared by them. There is no dispute as to discharge of central excise duty on the sale pack as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation has to be done on pro rata basis or cost basis and submits that the Hon ble Supreme Court has held that as per Rule 7 of the Valuation Rules, best judgment method is to be applied and accordingly, the best judgment method has been applied in this case. 5. We have considered the submissions made by both sides and perused the records. In our considered view, the appellant has made out a case in their favour for more than one reason. 6. As already recorded herein above, the issue is regarding valuation of physician samples. The allegation of the Revenue and the findings of the lower authorities are that the physician samples which are cleared in catch covers, and the value/cost of such catch covers needs to be included in the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w, Their Lordships proceeded ahead and clarified the legal aspect as to the valuation of the physician sample how it has to be done in paragraphs 7 and 8 wherein Their Lordships, after considering the provisions of Rule 7 of the Central Excise Valuation Rules, held that the best judgment method can be adopted by the authorities wherein Rule 6(b) which has got two sub-rules that can be applied. Their Lordships in paragraph 8 has held as under:- 8. In these cases the physicians samples which are given free of cost are clearly comparable with the goods that are manufactured by the assessee and sold in the market as the two goods are identical. In fact out of the same lot manufactured some are distributed as samples . Therefore, even whil ..... X X X X Extracts X X X X X X X X Extracts X X X X
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