ALKEM LABORATORIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE issue involved in these appeals is valuation of physician samples on which duty demands have been made as per the chart below.

(2.) PHYSICIAN samples are packed separately and valued by the Appellants as provided under Rule 11 read with Rule 8 of the C.Ex Valuation Rules, 2000 i.e. 115% (110% w.e.f.) 6.8.2003 ) of the cost of production in terms of CBEC Circular dt. 1.7.02 and duty was discharged accordingly on such physician samples cleared. As per the notices issued it was alleged that the valuation as per circular dt. 1.7.02 was not correct and valuation was to be arrived under Rule 11 of the valuation Rules 2000. Since Rule 4 preceded Rule 8, valuation of such samples was required to be done under Rue 11 read with Rule 4 and also the spirit of Rule 8 was not applicable for valuation of physician samples.

(3.) IT is found: