2018 (9) TMI 2146 - AT - Central Excise

Tribunal Rules No Duty on Incomplete Goods Destroyed During Testing; Favorable Outcome for Appellant.

The Tribunal allowed the appeal, setting aside the impugned order, and ruled that duty cannot be demanded on incomplete goods destroyed during testing. ... Duty on the samples cleared by the appellant in their own factory for testing - Revenue is of the view that as goods are complete in nature and cleared for testing, therefore, they are required to pay duty on these samples - HELD THAT:- Considering the fact that the in this case, the appellant are sending goods for testing in their own factory and the goods has not been cleared for the sale, moreover, without testing, the goods cannot be removed from the factory. In these circumstances, the goods are in-complete before the testing is done, therefore, no duty can be demanded on the samples which has been destroyed during the course of testing. The impugned order is set aside and the appeal is allowed. The appellant appealed against duty demanded on samples cleared for testing in their own factory. The Tribunal ruled in favor of the appellant, stating that duty cannot be demanded on incomplete goods destroyed during testing. The impugned order was set aside, and the appeal was allowed.