Ed on sample goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2016 Dear Experts, our mfg concern is going to send the finish goods as sample to it's debtors, plz clarify weather ED will be paid on sample goods or not if yes in whome name name the invoice will be made.... Regard Akhil Goyal

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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27 January 2016 3.1 Trade Samples

3.1.1 The manufacturers’ generally give such samples to their customers for ‘trial and approval’. The removal shall be in the same manner as the removal of goods for home consumption. The manufacturer shall prepare an invoice under rule 11 of the said Rules and record the details in his Daily Stock Account. He shall discharge duty in the manner specified in rule 8 of the said Rules unless the removal of samples are exempted from duty by a notification issued under Section 5A of the Central Excise Act, 1944.

3.1.2 Samples of certain goods sent to the trade by manufacturers are likely to be returned. In such cases, the procedure specified in rule 16 of the said Rules and the instructions relating thereto shall be followed