Cenvat Credit on free Samples

[Guest]

Dear Sir, We are a mfg co, Can we avail cenvat credit on imported or local free samples used for testing purposes, please explain, please give us any reference regarding this, thanks and regards.

[Mahir S]

Yes, credit may be availed, provided testing is part of the manufacturing process.

AI Summary

Cenvat credit on free samples is permissible when testing forms part of the manufacturing process. Cenvat credit on free samples is allowable only where testing or examination of imported or local free samples is performed as an integral part of the manufacturing process; the document answers that credit may be availed provided testing is part of manufacturing.