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TMI Blog2017 (11) TMI 1518X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Medispray Laboratories Pvt.Ltd. & Others [2017 (2) TMI 309-CESTAT Mumbai] - According to said judgement, Rule 4 of Central Excise Valuation Rules, 2000 shall apply only in those cases where the manufacturer manufacturing the physician samples and they themselves supplying free samples in the market and not in the case of physician samples sold on principal to principal basis. It was also held in the said judgements that in case of physician samples manufactured on job work basis and cleared to principal the valuation should be on 110% of the manufacturing cost. Appeal allowed - decided in favor of appellant. - E/600/07 - A/90868/17/EB - Dated:- 21-11-2017 - Mr. Ramesh Nair, Member (Judicial) And Mr. Raju, Member (Techni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factured on job work basis and cleared to principal the valuation should be on 110% of the manufacturing cost. 3. Shri Deepak S Chavan, Ld. Supdt. (AR) appearing on behalf of the Revenue reiterates the findings in the impugned order. 4. We have carefully considered the submissions made by both sides. We find that in the present case, the issue is of valuation of physician samples sold on principal to principal basis and manufactured on job work basis and returned the goods to the principal. In case of sale of goods, the appellants are adopting the transaction value in terms of Section 4 (1) (a) of Central Excise Act, 1944 and in the case of job work they are paying duty on cost of manufacture plus 10% of notional profit. The very same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. In the case of Okasa Pvt. Ltd. , the sale is on principal to principal basis. Therefore, the transaction value is squarely covered under Section 4(1)(a) of the Central Excise Act, 1944, hence the same cannot be disputed. In case of M/s Meditab Specialities Pvt. Ltd. and M/s Medispray Laboratories Pvt. Ltd., the appellants are manufacturing on job-work basis. Even in this case also, there is deemed sale value and duty is paid on such value. In the facts of the present case, the value as contended by the department shall not apply under Rule 4 of the Central Excise Valuation Rules, 2000. He placed reliance on the following judgments: - (a) Themis Laboratories Pvt. Ltd. - 2012 (286) ELT 244 (Tri-Mum) (b) Mayer Health Care P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts. Rule 4 of Central Excise Valuation Rules, 2000 shall apply only in those cases where the manufacturer manufacturing the physician samples and they themselves supplying free sample in the market. In the present case, all the three appellants are not supplying physician samples free of cost either in case of job-work basis or in the sale basis, the goods are sold to the principal. In such case, irrespective it is physician samples, the valuation shall be governed by Section 4 of the Central Excise Act. In case of job-work, the value should be in terms of principles laid down by the Hon'ble Supreme Court in the case of Ujagar Prints - 1989 (39) ELT 493 (SC) . Accordingly, the valuation shall be determined on the basis of cost of raw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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