https://www.taxtmi.com/caselaws?id=52289 Samples drawn from regulated pharmaceutical production for quality control, and goods not marketable without compliance with the Drugs and Cosmetics regime, were treated as outside the scope of central excise duty because excise attaches only to marketable goods. Inputs used in testing before manufacture, and goods or inputs destroyed or consumed in the quality control process, were not regarded as used in or in relation to manufacture in the manner assumed for Modvat reversal. On that basis, credit reversal was held unwarranted and the connected penalties lacked foundation where the underlying demand itself could not survive. en-us Tue, 24 Jun 2003 00:00:00 +0530 Tue, 05 Oct 2010 10:07:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=52289 Samples drawn from regulated pharmaceutical production for quality control, and goods not marketable without compliance with the Drugs and Cosmetics regime, were treated as outside the scope of central excise duty because excise attaches only to marketable goods. Inputs used in testing before manufacture, and goods or inputs destroyed or consumed in the quality control process, were not regarded as used in or in relation to manufacture in the manner assumed for Modvat reversal. On that basis, credit reversal was held unwarranted and the connected penalties lacked foundation where the underlying demand itself could not survive. Case-Laws Central Excise Tue, 24 Jun 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=52289