Alkem Laboratories Ltd vs Daman on 18 October, 2022
8|Page E/10053/2020-DB
be considered as manufactured goods as the same is not marketable in as
much as the same has not attained any level of marketability as is clear from
the facts that the same was sent outside the factory premises for testing and
sampling purpose. Marketability is decisive test for dutiability. Further we
observed that samples cannot be subjected to duty in terms of the decision of
the Tribunal in the case of Collector of Central Excise, Guntur v. Sahwala
Cylinders (P) Ltd. reported in 1998 (98) E.L.T. 645 (Tribunal) and the
Tribunal's decision reported in 1989 (39) E.L.T. 689 (Tribunal) in the case of
Collector of Central Excise v. General Cement Products (P) Ltd. and that
reported in 1999 (114) E.L.T. 947 (Tribunal) in the case of Bhansali Engg.
Polymers Ltd. v. Commissioner of Central Excise, Indore. All these decisions
maintained a consistent position that samples drawn for quality control test to
ascertain the marketability of products are not liable to excise duty. On
considering the above, we hold that, the samples cleared for testing and
quality control test are not liable to any excise duty.