TaxTMI 
TaxTMI 
Dear Sir,
We are pharma manufacturers, we are keeping some FG samples for our QC records. shall we pay excise duty on such samples. pls advice.
Thank Q
Excise on Samples
13 May 2016 
6 Replies 
2175 Views Asked by
Excise on samples: removal outside factory triggers duty, while in-process QC samples retained onsite do not.
Excise liability on samples depends on purpose and movement: process or in-process QC samples retained within the factory do not attract duty, whereas reserved/representative samples and samples sent outside the factory for customers or promotion are treated as removals and liable to duty unless covered by a specific exemption notification. Parties must determine sample purpose and destination and may also consider whether Cenvat credit is available when duty is paid on samples sent to another manufacturer. (AI Summary)
Excise liability on samples depends on purpose and movement: process or in-process QC samples retained within the factory do not attract duty, whereas reserved/representative samples and samples sent outside the factory for customers or promotion are treated as removals and liable to duty unless covered by a specific exemption notification. Parties must determine sample purpose and destination and may also consider whether Cenvat credit is available when duty is paid on samples sent to another manufacturer. (AI Summary)