Semi finish goods can clear for testing under rule 16 (c) of central excise rules 2002

[mk Jain]

Dear Sir,

Semi finish goods can clear for performance testing under rule 16 (c) of central excise rules 2002 on returnable basis without payment of duty if yes please refer any case law/rule

if no how can we clear the semi finish goods for testing purpose

Semi finish goods are covered in excisable goods or not ?

Rgds,

Manoj Jain

Eicher Engine

[Suryanarayana Sathineni]

Dear Friend ,

In my view , semi finished goods can be sent out for job work purposes under permission from Excise swhich are expected to be returned back after the required process from the Job worker.

In case , if any sample is required to send out for testing which is not returned after testing, you have no option except to clear the same on payment of duty against an excise invoice.

Best Regards

Suryanarayana

[mk Jain]

Sir We want to clear the goods for testing of product performance not for job work ( Under Rule 16(c))

And Rules are saying that excisable goods can clear for testing under above rule. Now question is :

Semi finish goods covered in excisable goods and if not then which rule allow to clear the goods for testing purpose on returnable basis.

Rgds,

Manoj Jain

[Suryanarayana Sathineni]

Dear Mr. Manoj

Please note there are two Rules deals with for sending .....

Rule 16B - Semi Finished Goods

Rule 16-C - Finished Goods

Under both the above Rules, the facility of sending the goods without payment of duty subject to certain conditions and in both the cases , you may have to apply permission in the prescribed form.

In view of this , you may choose the relevant Rule from the above which suits your requirement.

Regards

Suryanarayana

AI Summary

Returnable testing under Rule 16(c) permits clearance without duty for finished goods; semi finished goods follow the semi finished goods rule. Whether semi finished goods may be cleared for performance testing without payment of duty depends on separate rules for finished and semi finished goods; finished goods may be sent out for returnable testing under Rule 16(c) with permission and conditions, while semi finished goods fall under the rule governing semi finished goods/job work and require prescribed permission and compliance for duty suspension; non returned items must be cleared on payment of duty.