CENVAT Reversal against sample testing

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..... CENVAT Reversal against sample testing
Query (Issue) Started By: - Rajesh Purohit Dated:- 4-12-2020 Last Reply Date:- 4-12-2020 Central Excise
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Central Excise
Kind attn. Kastur .....

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..... i Sethi Sir A pharmaceuticals manufacturer have to test their each and every batch in house (not sent out side) before final packing. Although Chapter11 provide 'NO DUTY ON SAMPLE'' unti .....

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..... l cleared/removal from the factory. But can department demand reversal of CENVAT against sample used for testing ? whereas this testing is part of manufacturing process. Please cleaify all the expert .....

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..... s Reply By KASTURI SETHI: The Reply: Sh.Rajesh Purohit Ji, If final product is dutiable, then no reversal of Cenvat Credit is required on the value of sample used captively in the manufacture of FI .....

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..... NAL product. In the scenario explained by you, it is a case of captive consumption. See Notification No.67/95-CE dated 16.3.1995 as amended vide Notification No.19/14-CE dated 11.7.2014 read with Boar .....

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..... d's Circular No.96/85/2015-CX dated 7.12.15 (Para No.B-18 refers.) If you have still any doubt, post your query here again.
Discussion Forum - Knowledge Sharing .....

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