04 December 2009
one of our manufacturing client is covered under EOU and also have local sales and sales are made separately, i.e. for export of goods, sales is out of EOU production and for local customers sales is out of Other than Export(OE) production, these goods included in STOCK separately identified in EOU warehouse and OE warehouse. our client is sending samples as free of cost to their foreign customers dispatched from local(OE) warehouse. so please clarify me whether goods sent as samples for free of cost to foreign customers out of OE Manufacutered items is subject to excise duty or not?