2007 (11) TMI 191

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..... cordingly, a common order is being passed. 2. The brief facts of the case is that the appellant Pepsico India Holding are engaged in the manufacture of aerated water. During the process of manufacture of aerated water the appellant draws sample from online for testing which are tested within the factory itself. They also draw reference samples which are retained up to period of 6 months from the date of manufacturing and thereafter they are destroyed since they cannot be marketed. The appellants were issued four show cause notices stating that they have cleared the samples for test purposes in their in-house laboratory for testing of quality and for adherence to product specification without complying with the procedures laid down unde .....

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..... being tested for shelf-life and it only refers to testing which after testing is over is drained out. The show cause notices were confirmed and upheld by Commissioner (Appeals) wherein duties of various amount were demanded and penalties were imposed. 4. Learned Advocate for the appellant submit that duty has been demanded only because the samples were not entered in the statutory registers and samples were considered to be fully finished goods which have t be accounted for in the statutory records and can be removed only on payment of duty. It was submitted that it is admitted in all the show cause notices that the samples after testing were drained out or retained for shelf-life and were accordingly destroyed. There is neither allega .....

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..... rned Jt. CDR Mr. Govil however submitted that the appellants were statutorily bound to enter the production of samples in the statutory records as the goods were in fully manufactured condition and were required to maintain a separate register in respect of samples sent for testing and since there is no exemption in respect of samples drawn for testing purposes, duty has to be discharged on the same. In case the samples are destroyed in testing they have to apply for remission of duty which can be granted by the Commissioner which was not done in the present case and duty has been rightly demanded. 6. We have considered the submissions. We find that it is an undisputed fact that the samples after testing both in the laboratory and for s .....

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