Per Justice U.L. Bhat :

The common appellant is engaged in the manufacture of pharmaceutical products falling under sub-Heading 3003.10 of the present Central Excise Tariff Act, 1985. Besides effecting sales appellant has been supplying, free of cost, samples to physicians also. The dispute in this appeal relates to the determination of the assessable value of the free samples. Appellant filed price list declaring the value of physician's samples as the sum total of the cost of raw material, manufacturing cost and manufacturing profit. The price list having been approved provisionally, clearances were being made accordingly on payment of duty. For the periods from 25.7.91 to 30.11.91 and 1.12.92 to 28.4.93, notices wee issued to the appellant stating that since Section 4 (1) (a) of the Central Excise Act (for short, the Act) cannot be applied to the instant case in the absence of sale to physicians the provision of Section 4 (1) (b) of the Act and Rule 6 of Central Excise (Valuation) Rules, 1975 (for short, the Rules) would be applicable and that being so the value should be determined on the basis of proportion of the value declared for the corresponding medicines sold in the