Per T.K. Jayaraman :

This appeal has been filed by Revenue against the OIA dated 04.01.2002 passed by the Commissioner of Central Excise & Customs (Appeals), Cochin.

2. The issue involved in this appeal is regarding the valuation of Physician's Samples for free distribution among Doctors through Medical Representatives. The Commissioner (Appeals) has held that it is more appropriate to adopt tine Rule 6 (b) (ii) of Central Excise Valuation Rules, 1975 for valuation of the physician's samples as the adoption of Rule 6 (b) (i) is not proper. He has given the following reasons in the impugned order :-

(i) The packing of the goods, which has a considerable influence in the assessable value of the final product, is different.

(ii) The post manufacturing expenses which have to be loaded into the assessable value of the final product are also different in the two types of goods.

(iii) The cost value of the samples are loaded into the goods on sale.

3. Revenue is aggrieved over the impugned order on the following grounds:

(i) Cost construction method is to be considered as a last resort only when the sale value of comparable goods is not available and the value of the products cannot be asce