No Excise Duty on Valuation under S. 4 A of Physician Sample of Medicaments sold to Dealers for Free Distribution to Doctors: CESTAT [Read Order]
![No Excise Duty on Valuation under S. 4 A of Physician Sample of Medicaments sold to Dealers for Free Distribution to Doctors: CESTAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2023/09/No-Excise-Duty-on-Valuation-Physician-Sample-of-Medicaments-sold-Dealers-for-Free-Distribution-to-Doctors-CESTAT-Free-Distribution-to-Doctors-taxscan.jpg "No Excise Duty on Valuation under S. 4 A of Physician Sample of Medicaments sold to Dealers for Free Distribution to Doctors: CESTAT [Read Order]")
The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that Excise Duty is not leviable on Valuation under Section 4 A of Central Excise Act , 1944 on the physician sample of medicaments sold to dealers for free distribution to doctors. The issue involved in the present case is that whether Sun Pharmaceuticals Industries Limited the appellant...
The Ahmedabad bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that Excise Duty is not leviable on Valuation under Section 4 A of Central Excise Act , 1944 on the physician sample of medicaments sold to dealers for free distribution to doctors.
The issue involved in the present case is that whether Sun Pharmaceuticals Industries Limited the appellant is liable to pay excise duty on the valuation under Section 4A in respect of Physician sample of Medicaments sold to the dealer for free distribution to the Doctors on which “not for sale” is mentioned or the valuation should be done under section 4 of the Central Excise Act, 1944.
Shri A.B. Nawal, Cost Accountant appearing on behalf of the appellant submitted that the issue in the appellant’s own case has been settled in their favour by the Supreme Court and this Tribunal in the judgments of Commissioner of C. Ex. & CUS., Surat Vs. Sun Pharmaceuticals Inds.Ltd. 2015 (326) E.L.T.3 (S.C.). Shri Ajay Kumar Samot, Superintendent (AR) appearing on behalf of the revenue reiterated the finding of the impugned order.
The appellant have manufactured and cleared the goods i.e. Physician sample mentioning clearly on the pack that it is not for sale. Since the goods is not for sale and no MRP is affixed on the product, the goods cannot be valued under Section 4A as the same is not for retail sale. Accordingly, the correct provision for valuation of physician sample is section 4, where the Excise duty is payable on the transaction value.
In view of the Supreme Court judgment in the appellant’s own case issue is finally settled in favour of the appellant. A two member bench Mr. Ramesh Nair, Member (Judicial) and Mr. C L Mahar, Member (Technical) set aside the impugned orders and allowed the appeal.
To Read the full text of the Order CLICK HERE
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