2020 (5) TMI 587

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..... in the manufacture of P & P medicaments falling under Chapter 30 of the Central Excise Tariff Act, 1985. They manufacture the medicaments on job work basis (loan licensee basis) and also on their own account and sell it to their respective customers. In the case of their own manufactured products, even the physician samples are sold to their customers who in turn distributed free of cost. The appellants are determining the value of the medicaments sold to their customers by adopting the transaction value under Section 4(1)(a) of the Central Excise Act, 1944 when the goods were sold, but when it was manufactured on job work basis (loan licensee) valued the same by taking the cost of production + 10% as provided in Rule 8 of the Central Excis .....

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..... pi - 2015 (322) ELT 808 (SC). She has further submitted that this Tribunal in the case of Medispray Laboratories Pvt. Ltd. vs. CCE, Goa - 2017 (5) GSTL 300 (Tri.-Mumbai), taking note of the judgment of the Hon'ble Supreme Court, held that Rule 4 of the Valuation Rules, 2000 will not apply to the aforesaid situations. 4. Learned AR for the Revenue reiterated the findings of the learned Commissioner (Appeals). 5. Heard both sides and perused the records. 6. The short issue for consideration in the present appeals is whether the physician samples manufactured by the appellant on job work basis and sold on principal to principal basis to customers be valued as per Rule 4 of the Central Excise Valuation Rules, 2004 or Section 4(1)(a) of the C .....

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..... job worker. It is not the case of the Revenue that the value determined by the appellant is less than the value to be arrived at on the principles of Ujagar Print's case. 5.2 As regards the physician samples manufactured and sold by Okasa Pvt. Ltd. to their principal, the transaction is on principal to principal basis. Therefore, whatever goods were sold by the appellant to their principal is correct transaction value in terms of Section 4. In both type of clearances in any circumstances, Rule 4 valuation shall not apply." 7. We find that the aforesaid finding of the Tribunal is based on the ratio laid down by the Hon'ble Supreme Court in Sun Pharmaceuticals Inds. Ltd. relating to sale of physician samples on principal to principal ba .....

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