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Excise Duty

Meenakshi Mehta (CA, CS) (50 Points)

20 February 2010

Whether Excise duty is payable on all sample, even if given free.?

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MOHIT MAHAJAN (LCS, ACA) (2050 Points)
Replied 20 February 2010

Yes, excise duty will be paid on goods distributed as free samples. Remember excise duty is duty on production/manufacture of goods i.e. once the goods are manufactured liablity for paying duty arises, it doesnt matter whether goods are disposed off as free samples or otherwise. Even sale of goods is not necessary for levying excise duty.

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