TMI Blog2010 (12) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... wn from the finished goods manufactured by them for testing purposes - In the case of captive consumption, the goods manufactured captively are to be used further for manufacturing the final product but it is not in the case of samples drawn and retained in the factory. As per the CBEC Manual it has been clarified that duty shall be payable when the samples have gone for testing. In the event wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants but on appeal by the Revenue before lower appellate authority, the demand of duty, interest and penalties proposed in the show-cause notice were confirmed relying on the decision in ITC Ltd. vs. CCE in 2003 (151) ELT 246 (SC). Aggrieved from the said order, appellants are in appeal before this Tribunal. 2. Shri Modi appearing on behalf of the appellants submitted that as per Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that to charge duty it is to be seen that as soon as the goods are manufactured, they are liable to pay excise duty. Although the duty is payable on removal of the goods but in the case of captive consumption duty is liable to be paid on manufacturing of goods which are used for captive consumption. Same treatment should be given to the sample drawn by the appellants for testing purposes. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t these samples have been retained by the appellants in their factory. The contention of the DR have no force that the treatment of captive consumption should be given to these samples. In the case of captive consumption, the goods manufactured captively are to be used further for manufacturing the final product but it is not in the case of samples drawn and retained in the factory. As per the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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