ED on Free Sample for Export

This query is : Resolved 

15 November 2007 Sir,
We are export the pharmaceutical products (Preparing UT-1 , ARE-1 ).We are also sending the free samples (free of cost) with sale goods. Local Authority says for paying excise duty on Free Sample.
Is required to pay excise duty on free sample?

Thanks

15 November 2007 Whether free samples are exported or they are cleared for domestic customers

If domestic customers the local authorities are right in their claim

If export you can clear the same under bond

Also clarify whether samples are manufactured by you on your own or from loan licensee or Third party as valuation of samples will vary based on LL or TP, but duty is payable

You may also refer Chaper 11 of CBEC Excise Manual for detailed subject of Samples

15 November 2007 Thanks.

16 November 2007 You mean to say that along with your commercial sale [consignment] your company is sending FREE Samples of the same product?
Pls. clarify


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