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2016 (3) TMI 569 - AT - Central ExciseDuty demand on the clearance of coffee decoction for testing and destruction in the appellant's factory premises - duty liability on the samples which are collected from the shop floor and tested in the in-house laboratory - Held that:- Collection of the samples of finished goods and testing the same for ascertaining the quality is part of the manufacturing process. The assessee, has to ascertain that the final products manufactured by them are conforming to the standards laid down by themselves or as per requirement of the law, which requires, testing of the samples which do get destroyed during such testing. It is common sense, manufacturing of a final product is not complete without the testing of the final products in the in-house laboratory or any agency; as the marketing of final products can be done only if the final products are up to a standard. This cannot be said or equated with the clearances of the goods and duty liability can be fastened. We find from the show-cause notice as well as the adjudication order and the order of the first appellate authority, that there is no dispute that the testing of the coffee decoction is in the appellants own in-house laboratory and there is no remanents. On the face of such factual matrix, we have to hold that both the lower authorities have misdirected their findings in coming to a conclusion that the testing of the samples of coffee decoction are liable to duty. - Decided in favour of assessee
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