Case Law Details
Parker Robinson Private Limited Vs CCE (CESTAT Kolkata)
Introduction: A recent case adjudicated by the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) in Kolkata revolved around Parker Robinson Private Limited, a medicament manufacturer. The case questioned the applicability of excise duty concerning physician samples distributed free of cost and whether the duty should be based on the Maximum Retail Price (MRP) or the transaction value. The ruling provided by CESTAT Kolkata brings clarity to this complex issue.
Detailed Analysis:
1. Case Background: Parker Robinson Private Limited, a manufacturer of medicaments, became embroiled in a legal dispute with excise authorities. During a routine examination, it came to light that the company had distributed physician samples of medicines for free. The pivotal issue at hand was whether excise duty on these samples should be calculated based on their MRP under Section 4A or on their transaction value under Section 4 of the Central Excise Act, 1944.
2. Section 4A vs. Section 4: Section 4A(2) of the Central Excise Act, 1944, stipulates that excisable goods for which retail sale prices must be declared on packaging, following the Standards of Weights and Measures Act, 1976, are subject to Central Excise duty. The duty is calculated based on the value, which is deemed to be the retail sale price minus any allowable abatement.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
