Periodic sample testing governs later clearances unless manufacturing conditions change or a re-test challenge is made.

Periodic sampling of excisable goods ordinarily governs clearances until the next sample is drawn, unless the manufacturer shows a relevant change in manufacturing conditions or successfully challenges the test by re-test. Rule 56 permitted sampling and re-test, and the sample here was drawn in the presence of the manufacturer's representative for testing yarn denier. The exemption under Notification No. 188A/62-C.E. was conditional and tolerance applied only within the notification's stated limits. The demand for the one-month period from 30-6-1983 to 31-7-1983 was therefore upheld.

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Issues: Whether the demand of duty was sustainable on the basis of the sample drawn on 30-6-1983 and whether the test result could govern clearances for the subsequent period of one month.

Analysis: Rule 56 of the Central Excise Rules, 1944 authorised drawal of samples for testing and provided an opportunity for re-test, which was not availed of. The sample was drawn in the presence of the manufacturer's representative and the record showed that it was drawn for testing the denier of the yarn. The exemption under Notification No. 188A/62-C.E. was conditional and allowed tolerance only within the limits expressly stated in the notification. The Board's instructions regarding monthly sampling did not require the test result to be confined only to the very day of drawal. The accepted principle was that a periodic sample governs production until the next drawal of sample, unless there is material to show a change in the manufacturing process or product quality.

Conclusion: The demand of duty for the one-month period from 30-6-1983 to 31-7-1983 was valid, and the challenge to the demand failed.

Ratio Decidendi: Where excisable goods are periodically sampled for testing, the test result is ordinarily applicable until the next drawal of sample, and an assessee cannot displace that result without showing a relevant change in the manufacturing conditions or a valid re-test challenge.

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