Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1944: Object of the Act - Discussed. s.3 Central Excise Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Drugs and Cosmetics Act, 1940 (23 of 1940) Central Excise Act, 1944 (1 of 1944) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Central Excise Act, 1944:Object of the Act - Discussed.. s.3 - "Physician Samples" manufactured and distributed as free samples - Liability to pay excise duty - Held: Liable to excise duty - Excise is a duty on manufacture, duty is payable whether goods are sold or not - Sale is not necessary condition for charging excise duty - The distribution of physician sample serves as a marketing tool in the hands of pharmaceutical company- It is not mandatory for the company to distribute the physician samples of every drug they manufacture .:.. Prohibition on the sale of physician samples intended for distribution to medical practitioner as free samples by rule 65(18) of Drugs Rules. -shall have no bearing or effect on the levy of excise duty - Constitution of India, 1950 - Seventh Schedule, List I, Entry 84 - Drugs and Cosmetics Act, 1940 - Drugs and Cosmetics Rules, 1945 - r.96(1)(ix) - Central Excise Valuation Rules, 1975. Central Excise Valuation Rules, 1975:s.6(b)(ii) - Valuation of Physician's samples - Held: To be valued on pro-rata basis - Central Excise Act, 1944.Drugs and Cosmetics Act, 1940: Object of the Act - Discussed.Prohibition on the sale of physician samples intended for distribution to medical practitioner as free samples by rule 65(18) of Drugs Rules - Effect on the levy of excise duty Held: Shall have no bearing or effect on the levy of excise duty since excise is duty on manufacture and duty is payable whether or not goods are sold - The Central Excise Act and the Drugs Act and the Rules made thereunder, operate in entirely two different fields having different objects, purposes and schemes - The conditions or restrictions contemplated by one statute should not be lightly and mechanically imported and applied to fiscal statue for non levy of excise duty, thereby causing a loss of revenue - Interpretation of statutes.Drugs and Cosmetics Rules, 1945:Rule 96(1 )(ix) - Labelling - Label "Physician Samples Not to be sold" - Process of labelling is distinct or different from the overprinting on the label of a physician's sample - Manufacture for the purpose of the Central Excise Tariff Act cannot be said to be incomplete until 'Physicians Sample-Not to be Sold' is printed on the label - Drugs and Cosmetics Act, 1940.Precedent:Doctrine of merger - Held: In case, the appeal is dismissed without reasons, such order entail application of the doctrine of merger, wherein the superior court upholds the decision of the lower court from which the appeal has arisen. |
Judge | Honble Mr. Justice H.L. Dattu |
Neutral Citation | 2011 INSC 49 |
Petitioner | Medley Pharmaceuticals Ltd. |
Respondent | The Commissioner Of Central Excise And . Customs, Daman |
SCR | [2011] 1 S.C.R. 741 |
Judgement Date | 2011-01-14 |
Case Number | 3626 |
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