9911796707
TMI Blog2024 (11) TMI 1124X X X X Extracts X X X X X X X X Extracts X X X X ..... ules, 2000. Later, the same was reconsidered and it was clarified that the proper rule for determination of value of free samples cleared from the factory would be Rule 4 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. The Hon ble High Court of Bombay in the case of INDIAN DRUGS MANUFACTURER'S ASSOCN. VERSUS UNION OF INDIA [ 2006 (9) TMI 94 - BOMBAY HIGH COURT] case held that the value of physician samples cleared free be determined by adopting Rule 4 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. There was no suppression or misdeclaration on the part of the appellant with intent to evade payment of duty. Consequently, the demand with interest be limited to the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of Excisable Goods) Rules, 2000, show-cause notice was issued to them on 03.06.2011 proposing to recover differential duty for the period from May 2006 to September 2010 amounting to Rs.41,35,113/- along with interest and penalty. On adjudication, demand was confirmed with interest and penalty. Aggrieved by the said order, they filed an appeal before the learned Commissioner (Appeals), who in turn rejected their appeal. Hence, the present appeal. 3. At the outset, the learned advocate for the appellant has submitted that as far as merit is concerned, on instruction from the appellant that since the issue is covered against the appellant in various decisions of this Tribunal, they would not contest the same on merit, however, the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee being passed during the intervening period. He has submitted that all along they have been clearing the goods on payment of duty on arriving by adopting the value at 110% of the cost of production and the department had never objected to the same. It is his contention that in the ER-1 Returns Form did not assign any particular column for mentioning the details of the goods cleared for demo purposes and the appropriate value for such clearance. In absence of any particular entry assigned for such declaration, the clearance was not separately mentioned but included in the quantity manufactured and cleared on payment of duty. Hence, the allegation of misdeclaration or suppression of fact as held by the Commissioner (A) in the impugned or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the factory would be Rule 4 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. The Hon ble High Court of Bombay in the case of Indian Drug Manufacturers Association (supra) case held that the value of physician samples cleared free be determined by adopting Rule 4 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. The said ruling was latter followed by the Karnataka High Court also. In this scenario, when the principle of law was not settled and views have been expressed about the applicability of Rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 differently by various Benches of the Tribunal and as the issue relates to pure qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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