MADLEY PHARMACEUTICALS LTD. vs COMMNR OF CENTRAL EXCISE&CUSTOMS, DAMAN

The Supreme Court addressed the valuation of Physician samples under the Central Excise Valuation Rules, 1975 and 2000. It held that such samples should be assessed based on the cost of manufacture plus normal profits as per Rule 6(b)(ii) for the period before July 1, 2000, and under Rule 8 thereafter, rejecting the Revenue's pro-rata basis. The Court confirmed the Tribunal's decision that Physician samples are excisable goods despite being prohibited from sale under the Drugs and Cosmetics Act, 1940, establishing that their valuation must adhere to the prescribed rules.