TaxTMI 
TaxTMI 
2018 (7) TMI 235
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....excise duty refundable under Notification No.20/2007-CE for the goods manufactured and cleared from the above-mentioned unit. From each lot of the manufactured goods, the appellant draws samples (also called as control samples) of finished products for the purpose of analysis as per the requirements expressed under various statutory enactments. These control samples are preserved by the quality Assurance Department in the Sample Storage Room inside the factory premises for a period of 15(fifteen) months. Ledger is maintained at the sample storage room wherein the quantity of samples received for the day is entered. At the end of this period, the control samples are destroyed within the factory. Proper records are maintained by the appellant....
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....entral Excise Rules, 2002 states that for excisable goods which are used within the factory, the date of removal for the purpose of determining the removal shall be the date of issue of goods. He further submits that even in cases where the goods are used within the factory premises, the same shall amount to removal of goods. Accordingly, the control samples issued to the Quality Assurance Department shall be considered as removal and the appellant has correctly utilized Cenvat credit for payment of duty. He relied upon the decision of the Tribunal in the case of Veekayan Industries v. CCE [1985 (21) E.L.T. 596]. The ld.Advocate further submits that the CBEC's Excise Manual of Supplementary Instructions 2005 states that when the control sam....
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....). Notification No.20/2007-CE (supra) grants exemption to all the goods manufactured and cleared from a unit located in the states of Assam, Tripura, Meghalaya, Mizoram, Manipur, Nagaland and Sikkim. Accordingly, the manufacturing unit in the state of Assam is eligible for the exemption under the said Notification. Rule 4 of the excise Rules provides for payment of excise duty upon removal of goods from the factory premises therefore the clearance of excisable goods from the factory premises forms the points of taxation on which the liability to pay duty arises. It is pertinent to note that explanation II to Rule 4(3) of the Central Excise Rules states that putting the manufactured goods for any use within the factory of production for manu....