2018 (5) TMI 398

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....vin, Supdt. (AR), for Respondent Per: Ramesh Nair The facts of the case are that the appellants are engaged in the manufacture of excisable goods falling under Chapter 72 of the Central Excise Tariff Act, 1985. The appellants cleared four samples from each batch of Galvanized Cold Roll Coils in the form of white strips. These samples were taken for testing purpose. All such tested samples, a....

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....before the Commissioner (Appeals), who dismissed the appeal. Therefore, the appellants are before us. 2. Ms. Manasi Patil, learned Counsel appearing on behalf of the appellant submits that since the sample drawn from a finished goods has been cleared on payment of duty, being scrap material, no further duty can be demanded. The sample was drawn captively for testing purpose as per the requireme....

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....f para 3.2 to chapter 11 of CBE&C's Manual, it is provided that the sample drawn for testing should be accounted for in the stock account and appropriate duty shall be paid by the assessee on such samples before removal for testing purpose unless thereby exempted by duty exemption notification. Therefore, the appellant should have paid the duty while drawing the sample of the finished goods as per....

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....mples drawn for the testing is not liable. This judgment has been affirmed by the Hon'ble Supreme Court. 4.1 A similar issue has been considered by this Tribunal in the case of J.K. Industries (supra), wherein it was held that samples of tyres drawn for in-house testing in accordance with BIS Manual, destroyed during testing, test being essential for making the goods marketable in absence of wh....