Seagull Drugs Limited vs Commissioner of Central Excise

Alok Singh, J.—Present appeal is preferred u/s 35G of the Central Excise Act, 1944 assailing the order dated 1-6-2011 passed by the Customs, Excise and Service Tax Appellate Tribunal, New Delhi, in Appeal No. E/2706/2005-EX(DB). Brief facts of the present case, inter alia, are that pursuant to the scrutiny of the record by the audit and by the range officers, the discrepancy in the method of variation in relation to the valuation of the product cleared for the market sale and of those cleared as physician''s samples was revealed, therefore, show cause notice dated 31-5-2002 was issued to the appellant for the relevant period from April, 1997 to June, 2000. The stand of the appellant before the authorities below was that cost of the manufacturing of the physician''s samples is less and of medicine for the sale in the open market is higher, therefore, for the physician''s samples valuation is shown on the lower side and on the medicines to be sold in the open market is on the higher side.

The learned Tribunal in the impugned order has rightly observed that mere cannot be two valuations on the medicines for the physician''s sample and on the medicines to be sold in the open market.

We find that there cannot be two valuations for the physician''s sample and for the open market sale, therefore, order impugned does not suffer from any illegality and jurisdictional error. Hence there is no merit in the present appeal and the same is dismissed.