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2018 (5) TMI 398 - CESTAT MUMBAIValuation - captive consumption or not? - sample drawn for testing, the same are cleared on payment of duty as scrap - case of the department is that the samples drawn is a finished goods and the same was used captively, therefore, such clearances should be made following the valuation principles in terms of Rule 4 by virtue of Rule 11 of Central Excise Valuation (Determination of price of Excisable Goods) Rules, 2000. Held that: - the appellant have drawn the sample captively within the factory for testing purpose, since the goods were not cleared from the factory, no duty was required to be paid and as and when the sample was cleared, the same was cleared in the form of waste and scrap and excise duty was paid on the transaction value of such waste and scrap. In this fact, there is no question of demanding duty on the captive consumption of sample for testing. The appellant's case is on the better footing that the sample tested were subsequently cleared as waste and scrap on payment of duty. The duty on the sample drawn for testing is not sustainable - appeal allowed - decided in favor of appellant.
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