Excise valuation doubt. please help!

Nebody knows the answer of the above question please!!!

Sec 4A is not applicable on goods supplied free...therefore valuation can't be done on MRP basis

Board’s circular No. 813/10/2005-CX dated 25.4.2005 clarifies that in case of free samples, the  value should be determined under  Rule 4 of Central Excise Valuation ( Determination of Price of Excisable Goods) Rules, 2000 . Further circular 915/2010 clarifies that eventhough the goods are covered under MRP based valuation, Rule 4 valuation is applicable for free samples.

If gift item is exempt, no duty eventhough principal item is dutiable. If gift item is dutiable, duty is payable eventhough principal item is exempt. Winning gifts, duty is payable upon clearnce of gift items. Cash price are not liable to duty in the absence of clearance of goods. Chance to win discount has no impact on valuation as it is a contingency after clearnce of goods from factory. Exchanges takes place at retail level which has no impact on valuation bcase value is the price for delivery at  the time and place of removal which is the factory in most of the cases or MRP less abatement.

@ Nair

Central Excise Valuation Rules, 2000 are applicable if conditions of sec. 4 (Transaction Value are not satisfied).

@ Ritu

For attraction of sec 4A conditions to be satisfied are:

• Goods must be excisable
• Goods must be such as are sold in package
• Goods must be required by Standards of Weights and Measures Act, or rules made thereunder, or under any law to declare MRP on package.
• Goods must be specified by the Central Government in official gazette.

Moreover, distribution of free samples (trade discount, or quantity discount) are dealt in valuation on the basis of transaction value system.

if i am wrong then plz guide me further, so that i can update myself.

Thanks