https://www.taxtmi.com/forum/issue?id=107874 Removal of goods as free samples outside the factory is generally liable to excise duty unless an exemption notification applies. If a sample sent to a third party lab is returned in full after testing, duty paid may be taken as credit under Rule 16; if the sample is destroyed or consumed during testing, return and credit do not arise. One view treats direct supply to a third party for testing as not liable at that point, while subsequent distribution as free samples remains chargeable; VAT/CST implications differ and may result in loss of input tax credit. en-us Mon, 19 Jan 2015 14:21:07 +0530 Thu, 23 Jan 2025 15:57:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=107874 Removal of goods as free samples outside the factory is generally liable to excise duty unless an exemption notification applies. If a sample sent to a third party lab is returned in full after testing, duty paid may be taken as credit under Rule 16; if the sample is destroyed or consumed during testing, return and credit do not arise. One view treats direct supply to a third party for testing as not liable at that point, while subsequent distribution as free samples remains chargeable; VAT/CST implications differ and may result in loss of input tax credit. Discussion-Forum Central Excise Mon, 19 Jan 2015 14:21:07 +0530 https://www.taxtmi.com/forum/issue?id=107874