Supreme Court of India

Medley Pharmaceuticals Ltd v. The Commissioner of Central Excise and. Customs, Daman

Neutral citation

Reported as [2011] 1 S.C.R. 741

Bench D.K. Jain and H.L. Dattu JJ.

Decided 14 January 2011

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

4 Supreme Court benches have cited this judgment.

What the Court ordered

We hold that physician samples have to be valued on pro-rata basis for the relevant period.

Judgment, page 29

From the headnote

Central Excise Act, 1944: c 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

Authorities it was built on

1989 Hindustan Polymers Etc. Etc. v. Collector of Central Excise, Etc. Etc. cited by 18
2003 M/s Cadila Laboratories Pvt. Ltd. v. C.C.E. Vadodara cited by 1

Where later benches applied it

2012 Commissioner of Central Excise, New Delhi v. M/s. Connaught Plaza Restaurant (p) Ltd., New Delhi relied on
2011 Commnr. of Central Excise, Meerut-ii v. M/s. Sundstrand Forms P. Ltd. relied on
2023 M/s Tata Motors Ltd. v. The Deputy Commissioner of Commercial Taxes (spl) & Anr. referred to
2011 Union of India and Anr. v. Association of Unified Telecom Service Providers of India and Ors. referred to

Of those, 2 relied on · 2 referred to

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