Goods sent for exhibition

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PRATHAP H K (Querist)
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19 September 2016 Please let me the procedure and duty applicable for goods sent for exhibition within India for display purpose under central Excise

Rajannaidu

Rajannaidu (Expert)
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19 September 2016 Sample procedure would apply to do this transaction, which is mentioned in chapter 11 of Excise manual.
Categorization of Samples
2.1 The samples can be categorized, as follows:
1. Trade samples sent to customers for trial;
2. Samples for test purposes;
3. Samples for supply against sale contracts or for enforcement of control measures;
4. Samples for display at exhibitions, fairs and in show-cases; and
5. Samples for market inquiries by Central Excise Officers.
2.2 Apart from the assessee requiring the samples for cogent reasons, the Central Excise Department may also require drawl and testing of samples and the assessee shall comply with such directions as may be given in this regard. However, there shall not be any drawl and testing of samples in routine manner.
• Procedure for the drawl and accounting of Samples
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.