Madley Pharmaceuticals Ltd vs Commnr Of Central Excise&Customs;, ...

The Supreme Court addressed the valuation of Physician samples under the Central Excise Act, 1944, specifically analyzing Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975, and Rule 8 of the Central Excise Valuation Rules, 2000. The Court held that Physician samples should be assessed based on the cost of manufacture plus normal profits, rejecting the Revenue's pro-rata basis valuation. The Court affirmed the Tribunal's decision that Physician samples are excisable goods despite being statutorily prohibited from sale under the Drugs and Cosmetics Act, 1940.