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TMI Blog2016 (3) TMI 569X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6] on an identical issue has held that the items which get destroyed during quality control test is not liable to excise duty. It is his further submission that the goods have been cleared only to in-house quality control testing; without which, the products i.e. coffee decoction is not marketable; the valuation of the products is also incorrect; question of remission of duty on the goods tested and getting destroyed during the testing purpose will not arise. 4. Learned DR on the other hand would submit that the Tribunal in the case of Positive Packaging Industries Ltd. Vs. CCE, New Panvel [2010 (249) E.L.T. 57 (Tri.-Mumbai)] has held that the samples drawn for testing quality and preserved for investigation of complaints are liable to d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 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. 5.5. We also find that Apex Court in the case of ITC Ltd. laid down a law that duty liability does not arise on testing of samples. In that case, the appellant therein had taken up the issue before the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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