S.S. Sekhon, Member (T) - (1.)After hearing both sides and considering the issue it is found that this appeal is on the duty demands made on pharmaceutical samples withdrawn from production for testing in the factory and destruction of such samples.
(2.)The issue is now well settled by the Larger Bench in the case of CCE v. Dabur India Ltd. wherein after considering the instruction in the Basic Excise Manual as on 31.12.79 issued by Central Board of Excise and Customs and the Supplementary Instruction to the Excise Manual from 1.9.2001 classifying the position that samples required for laboratory test in the factory and for preservation for investigation of complaints can be drawn and no duty be charged, the Larger Bench allowed the reference on central samples. Following the instructions and Clarification issued, by the Board for the Excise Manuals, we would also find that test samples need not be charged to duty, if not cleared from the factory.
(3.)We would therefore, following the Manual Instruction and the Larger Bench rate, set aside the order on clearance on duty, of samples, required for Test in the factory and allow this appeal.