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

The Supreme Court addressed the valuation of Physician samples under the Central Excise Valuation Rules, 1975 and 2000, specifically examining Rule 6(b)(ii) and Rule 8. 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 for valuation. The Court affirmed the Tribunal's decision that Physician samples are excisable goods despite being prohibited from sale under the Drugs and Cosmetics Act, 1940, thus upholding the method of valuation adopted by the Commissioner.