Documents requirement

Dear Pavaz,

You need not pay excise duty on removals sent for quality/testing purpose. But however you may need to obtain permission from commissioner of excise.

Extract of Rule"

RULE [16C. Special procedure for removal of excisable goods for carrying out certain processes. — The Commissioner of Central Excise may, by special order and subject to such conditions as may be specified by him, permit a manufacturer to remove excisable goods manufactured in his factory, without payment of duty, for carrying out tests or any other process not amounting to manufacture, to any other premises, whether or not registered, and after carrying out such tests or any such other process may allow, -

(a)    bringing back such goods to the said factory without payment of duty, for subsequent clearance for home consumption or export, as the case may be, or

(b)    removal of such goods from the said other premises, for home consumption on payment of duty leviable thereon or without payment of duty for export, as the case may be :

Provided that this rule shall not apply to the goods known as “prototypes” which are sent out for trial or development test.]"

And one more way out for this situation is " you can also treat the same as sending for jobwork (sending for quality test could be treated as jobwork as decided in many caselaws) hence you please take one declaration under Notification 214/86 C.E (NT).

PFA The format