J B Chemicals & Pharmaceuticals Ltd Vs C.C.E (CESTAT Ahmedabad)
CESTAT Ahmedabad held that Medicament Supplies to Government Hospitals and Institutional Buyers shall be valued in terms of Section 4 and not Section 4A of the Central Excise Act, 1944.
Facts-
The issue involved in the present case is that whether the supply of medicaments to Government Institutions such as BHEL, Railway, Government Hospitals, etc. wherein, on the package it is mentioned ‘NOT FOR SALE’ and no retail price was printed is liable to be governed by Valuation Provision of Section 4 or Section 4A of the Central Excise Act, 1944.
Conclusion-
Tribunal in the case of MEDLEY PHARMACEUTICALS LTD. has held that Medicament Supplies to Government Hospitals and Institutional Buyers shall be valued in terms of Section 4 and not Section 4A.
Held that the issue is no longer res-integra and in the appellant’s case value of goods is clearly governed by Section 4 of Central Excise Act and not under Section 4A therefore, the impugned order is not sustainable hence the same is set aside.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The issue involved in the present case is that whether the supply of medicaments to Government Institutions such as BHEL, Railway, Government Hospitals, etc. wherein, on the package it is mentioned ‘NOT FOR SALE’ and no retail price was printed is liable to be governed by Valuation Provision of Section 4 or Section 4A of the Central Excise Act, 1944.
02. Shri Yogesh B. Desai, learned counsel appearing on behalf of the appellants at the outset submits that on the identical facts and the issue involved, this tribunal has passed various decisions wherein, it was held that when supply was made to institutions such as railways, government hospitals, etc. and on the package it is mentioned as ‘NOT FOR SALE’ and retail price was not printed, the valuation of the goods shall be governed by Section 4 and not Section 4A. He placed reliance on the following decisions:-
