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TMI Blog2018 (11) TMI 810X X X X Extracts X X X X X X X X Extracts X X X X ..... ER Per: P.V. Subba Rao. 1. This appeal has been filed against the Order-in-Appeal No. 40/2010 (H-IV) CE dated 29.03.2010. 2. The facts of the case in brief are that the appellant is a manufacturer of pharmaceutical products and clears the same on payment of duty. They also manufacture some products as physician samples which are not sold but given free to the doctors. They have been paying du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder-in-Original. Hence, this appeal. 3. None appeared for the appellant despite notice. We heard the departmental representative and perused the records. The facts of the case are not in dispute that the appellant manufactured physician samples and cleared them on payment of duty on cost construction basis taking 115% of the cost of production of the goods under Rule 11 of Central Excise Valuati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise Valuation Rules i.e., at the price which the similar goods were sold in the market. In their appeal the appellant brings to our notice that when the Board had different views at different points of time on the matter. In CBEC Circular No. 643/34/2002- C.Ex dated 01.07.2002 at S.No.13 it has been clarified by the Board that valuation of free samples should be done as per Rule 11 of Central Exci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been held by the majority members that physician samples are no different from other goods sold except for difference in quantity or packing and hence, Rule 8 of Central Excise Valuation Rules does not apply and Rule 4 applies read with Sec.4 and Sec. 4A of the Central Excise Act. 4. In view of the position now settled that the physician samples should be valued at the same rate at which s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind the extended period of limitation cannot be invoked in this case and the demand for the extended period does not survive. As we have found that malafide cannot be attributed to the appellant, we also are of the firm view that the penalties need to be set aside. In conclusion, the demand for duty within the normal period along with interest is upheld. The demand for extended period is set aside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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