https://www.taxtmi.com/caselaws?id=118035 Goods drawn batch-wise for mandatory in-factory quality control testing are not liable to central excise duty when they are consumed or destroyed in the testing process and proper accounts are maintained. The discussion distinguishes adverse precedent on the basis that the assessee had not kept proper records there, whereas here the samples were accounted for and explosives became marketable only after testing. The fact that defective or deteriorated explosives could not be sold without compliance also supported the view that testing was integral to manufacture and marketability. On that footing, the duty demand and penalty did not survive. en-us Tue, 25 Apr 2006 00:00:00 +0530 Thu, 28 Jun 2012 10:16:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=118035 Goods drawn batch-wise for mandatory in-factory quality control testing are not liable to central excise duty when they are consumed or destroyed in the testing process and proper accounts are maintained. The discussion distinguishes adverse precedent on the basis that the assessee had not kept proper records there, whereas here the samples were accounted for and explosives became marketable only after testing. The fact that defective or deteriorated explosives could not be sold without compliance also supported the view that testing was integral to manufacture and marketability. On that footing, the duty demand and penalty did not survive. Case-Laws Central Excise Tue, 25 Apr 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=118035