https://www.taxtmi.com/caselaws?id=51428 Control samples of manufactured medicines retained inside the factory under the Drugs and Cosmetics Act were treated as liable to central excise duty because the excise rules deemed in-factory consumption or utilisation to be removal from the place of manufacture, and their retention for quality control did not exclude them from the charging provisions. The plea that the samples were taken before the goods became excisable was rejected, and the duty demand was sustained. Although liability was upheld, the penalty was found excessive on proportionality grounds and was reduced to a nominal amount, giving the assessee only partial relief. en-us Thu, 10 Oct 2002 00:00:00 +0530 Fri, 24 Sep 2010 17:11:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=51428 Control samples of manufactured medicines retained inside the factory under the Drugs and Cosmetics Act were treated as liable to central excise duty because the excise rules deemed in-factory consumption or utilisation to be removal from the place of manufacture, and their retention for quality control did not exclude them from the charging provisions. The plea that the samples were taken before the goods became excisable was rejected, and the duty demand was sustained. Although liability was upheld, the penalty was found excessive on proportionality grounds and was reduced to a nominal amount, giving the assessee only partial relief. Case-Laws Central Excise Thu, 10 Oct 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=51428