TIOL debate – Valuation of physician samples

By Vijay Kumar

Legal Corner Icon — the image was hosted by the publisher and was not captured.There is a lot of confusion regarding assessment of Physician samples after the Board's circular 813/10/2005 dt. 25.4.06 which has been upheld by Mumbai HC order in Indian Drugs manufacturer Association case.

The Board's circular appears to be valid only where the Physician samples are being manufactured by independent manufacturers. However where the Physician sample is manufactured by job worker or loan licence, there seems to be no change in assessment and therefore they should be continued to be assessed as per earlier practice.

However field formations have issued SCNs all over India demanding duty on Physician samples where the same is manufactured by job workers and loan licencees to pay duty under Rule 4 of the Central Excise Valuation Rules. Today we are carrying a researched article in our Guest Column on the issue and we invite our esteemed netizens to comment on the issue.