C. Ex. - Whether duty should be levied on samples of cigarettes utilised in the factory production for quality control tests - Clarification regarding - Central Excise - 1/91-CX. 3

C. Ex. - Whether duty should be levied on samples of cigarettes utilised in the factory production for quality control tests - Clarification regarding Circular No. 1/91-CX. 3 Dated 4-1-1991 [From F. No. 112/36/90-CX. 3] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : C. Ex. - Whether duty should be levied on samples of cigarettes utilised in the factory production for quality control tests - Clarification regarding. I am directed to say that a doubt has been expressed whether duty should be levied on samples of cigarettes utilised in the factory of production for quality control tests. 2. The issue came up for discussion at the 3rd North Zone Tariff Conference held at Delhi on 30th November, and 1st December, 1990. The Conference felt that taking out of cigarettes within the factory of production for quality control tests would amount to removal within the ambit of Rules 9 and 49 of the Central Excise Rules, 1944, and as such technically, duty would be required to be paid, because the question whether the goods are drawn for the said purpose after reaching RG-1 stage or before is not relevant for the purpose of excisability. The Conference also noted that in some specific cases, samples drawn for quality control tests have been exempted in terms of Notification No. 171/70-C.E., dated 21-11-1970. This made it clear that duty was chargeable even on samples drawn for quality control tests, unless otherwise exempted. 3. The Board agrees with the views of the Conference. Accordingly, it is clarified that samples of cigarettes utilised within the factory of production for quality control tests would be chargeable to duty unless otherwise exempted.