2010 (12) TMI 52

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....ng substantial question of law :- " Whether control samples drawn for testing are chargeable to central excise duty under the provisions of Central Excise Act, 1944 and Rules made thereunder ? " 2. The respondent-assessee is engaged in the manufacture of bulk drugs. On 30/12/1998, a show cause notice was issued to the assessee calling upon them to show cause as to why duty should not be recover....

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....5 (Tri-LB) held that no excise duty is payable for samples drawn for testing and accordingly allowed the appeal filed by the assessee. Hence this appeal is filed by the revenue. 3. Mr. Jetly, learned counsel for the revenue submitted that the larger Bench decision in the case of Dabur India Ltd. (supra) has been distinguished in a subsequent decision of the Tribunal in the case of Positive Pack....

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....actory premises but were drawn for testing within the factory and in fact were consumed within the factory during the process of testing, the question of demanding any duty on those samples does not arise. We draw support for this view from the decision of the Apex Court in the case of ITC Ltd. V/s. Collector of Central Excise, Patna reported in 2003 (151) E.L.T. 246 (S.C.), particularly para 11 t....