Introduction, Categorization of Samples, Procedure for the Drawl and Accounting of Samples, Quantity of samples.
Categorization of Samples
Procedure for the
drawl and accounting of Samples
Quantity of samples
Preservation of Samples
Cost of samples when
drawn by the Department
Procedure for testing and re-testing of samples drawn by the Department
Clearance of model/proto-type without payment of duty for trial etc.
Samples drawn at the
time of export of goods
1.1 There is no specific provision in Central Excise (No.2) Rules, 2001
(hereinafter referred to as the ‘said Rules’) governing drawl and testing of
‘samples’ of manufactured goods or inputs to ascertain their correct
identity or classification or eligibility of any exemption. However, under
various procedures, such as relating to exports, assessment etc. drawl of
samples is required.
- Categorization of Samples
2.1 The samples can be categorized, as follows:
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.
- Trade samples sent to customers for trial;
- Samples for test purposes;
- Samples for supply against sale contracts or for enforcement of
- Samples for display at exhibitions, fairs and in show-cases; and
- Samples for market inquiries by Central Excise Officers.
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
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
3.2 Samples for test purposes
3.2.1 The samples of this category will generally include:-
3.2.2 The assessee is required to maintain a proper account of receipts
and the utilisation of samples in the test, in the laboratory. The
removal shall be in the same manner as the goods are removed for home
consumption. The manufacturer shall prepare invoice under rule 11 the
said Rules and make issue entries for the goods (samples) in the Daily
Stock Account. Appropriate duty shall be paid by the assessee on these
samples before their removal for test purposes unless otherwise exempted
by a duty exemption notification.
- Samples drawn by in-house laboratory for testing quality and
adherence to product specifications;
- Samples drawn for preservation for investigation of complaints;
- Samples drawn for test at other concerns and independent testing
- Samples required to be sent to Government Test centers including
the Chemical Examiners for test.
3.3 Samples for other purposes
3.3.1 Where samples are required for the purposes specified at (iii),
(iv) and (v) of paragraph 2.1 above, the procedure specified at
paragraph 3.2 shall be followed. However, it is clarified that when a
manufacturer preserves the samples of their product for some period for
investigation of complaints, if any, no duty should be charged on these
samples considering that the goods remain within the factory. Duty shall
be charged, unless exempted by a notification, once the samples are
cleared from the factory. If at any time the manufacturer desires to
destroy these samples, procedure specified in rule 21 of the said Rules
shall be followed.
- Quantity of samples
4.1 Samples should be drawn in reasonable quantity. However, in some
cases a specific quantity is asked for which should be supported by
requisition order from the Chemical Examiner. An account of all
departmental samples drawn and sent to the Chemical Examiner should be
maintained by the Range Officer.
- Test Memo
5.1 A test memo should always be prepared in triplicate, the original to
be sent to the Chemical Examiner, triplicate to the Deputy/Assistant
Commissioner and duplicate retained on the Range Officer’s record.
- Preservation of Samples
6.1 The samples drawn by the Range staff but not sent for test to
laboratories should be preserved for six months from the date of
analytical report on the sample tested. In case of any discrepancy being
noticed, the samples have to be preserved till the period of Appeal or
Revision application is over or till disposal of Appeal/Revision
Application. The remnants, which are not required by the concerned
assessee, may be destroyed soon after the parties specially inform that
they accept the analytical report furnished by the Chief Chemist or
after completion of the period of appeal or revision petition is over,
as the case may be.
- Cost of samples when drawn by the Department
7.1 In respect of samples drawn by the officers of the Central Excise
Department for ascertaining the identity of goods/its classification or
any other official purposes relating to Central Excise, the cost of
samples may be reimbursed on manufacturer’s request out of the
contingency by the divisional officer. The cost of the containers
required for drawl of samples may not be much and if the same cannot be
borne by the assessee through persuasion the same should be borne by the
Procedure for testing and re-testing of samples drawn by the
8.1 Except where there are special instructions for particular kind of
samples, the representative samples from such or any lot must be drawn
in quadruplicate in the presence of the owner/manager of the factory or
8.2 The quantities of excisable goods or materials taken for testing
should be the minimum necessary for testing and the Commissioner will,
in consultation with the Chemical Examiner concerned, specify for each
kind of excisable goods or materials the size of samples for this
8.3 The samples should be sealed with Excise seals and a declaration
obtained from the owners (manufacturers) to the effect that the samples
drawn are representative of the lot. The assessee, if he so desires, may
also be permitted to affix his seal on the samples.
8.4 The four samples drawn for test should be clearly marked as:'
8.5 Before despatch of sample to the Deputy/Assistant Commissioner of
Central Excise and the Chemical Examiner, the samples should be packed
properly, sealed and marked in such a way that they suffer no loss or
deterioration in transit or subsequent storage.
- Original for Chemical Examiner (to be despatched to him along with
the declaration and the relative test memorandum under intimation to the
Assistant/Deputy Commissioner concerned).
- Duplicate to be sent to the Deputy/Assistant Commissioner of Central
Excise (to be forwarded to him for safe custody for further use in case
a dispute arises).
- Triplicate for Range Officer (to be retained for any future
reference or to cover loss by post or other emergency).
- Quadruplicate to be given to the manufacturer (for his own record).
8.6 The Chemical Examiner after test, will return the remnant sample, if
fit for re-test and not in other cases, together with his test report,
to the Assistant Commissioner concerned. The Chemical Examiner will be
in position to indicate whether or not a remnant is fit for re-test and
the Deputy/Assistant Commissioner of Central Excise or other
adjudicating authority will in most cases be able to anticipate whether
the assessee will demand a re-test or not. The test results should be
speedily communicated to the Assessee.
8.7 The Department shall carefully preserve the remnant sample.
8.8 Whenever the assessee is dissatisfied with the test carried out by
the Chemical Examiner he can apply to the Deputy/Assistant Commissioner
of Central Excise concerned, after payment of the prescribed test fees,
for a retest within 90 days from the date on which the test result was
communicated to the him.
8.9 Where the remnant sample is available in sufficient quantity in its
original state, re-test should ordinarily be on such remnant sample.
Where such remnant sample was received from the Chemical Examiner but it
is not in sufficient quantity or in original state, or where the party
concerned desires, for one or the other reasons, a re-test on duplicate
or triplicate sample, Deputy/Assistant Commissioner of Central Excise,
the adjudicating authority or, as the case may be, the appellate
authority should pass an appropriate order for re-test on duplicate or
8.10 Where an assessee requests for re-test in a laboratory other than a
Control Laboratory (hereinafter in this paragraph referred to as
"outside laboratory") whether on the remnant or the duplicate or
triplicate sample, such request may be allowed for testing the sample
from an outside Government or Semi-Government laboratory with the prior
permission of the Commissioner or the Appellate or the Reversionary
authority, as the case may be after Chief Chemist has confirmed that the
departmental laboratories do not have the facilities for performing the
particular test in question. The request for re-test in outside
laboratories will be conditional upon the party concerned meeting the
cost of the re-test.
8.11 It is always open to the assessee concerned to get the
authenticated sample, in its possession, analysed in any laboratory of
his own choice and submit the findings of such laboratory for due
consideration on merits of each case, by the appropriate
adjudicating/appellate authority. However, the assessee should ensure
that the laboratory which analyses the samples indicates clearly in its
test report the full particulars of the samples and whether the central
excise seals affixed to the samples were intact or not at the time of
its receipt by such laboratory.
8.12 The payment of a fee for re-test does not entitle the assessee to a
copy of chemical report. The result of any such retest must however be
communicated to the owner at the earliest. Where a copy of the test
report is to be furnished to the assessee at its request, the Department
shall have the option to provide only a concise, edited) form of the
Test Report. The editing of the Test Report should be done in
consultation with the Chemical Examiner.
8.13 For the purpose of market enquiries regarding the value of
excisable goods, samples can be drawn by Central excise Officer on
written order of the Deputy/Assistant Commissioner of Central Excise, on
returnable basis. There is no need to make any issue entries in Daily
Stock Account for such samples as the same are to be returned to the
factory. The Range Officer should maintain a simple account showing the
date of taking the sample, quantity taken and date of return. There
should be proper acknowledgement of drawl and return of sample. The
officer who draws sample, will also give acknowledgement to the assessee
and take acknowledgement when he returns the sample.
Clearance of model/proto-type without payment of duty for trial etc.
9.1 Where a finished excisable goods falling in the category of
model/proto-type are to be sent out for trail purposes by actually
putting them to effective use after conducting certain test to ensure
that they meet with certain standard/specified norm, clearance may be
allowed on payment of duty. Their subsequent return to the factory may
be regulated in terms of rule 21 of the said Rules.
- Samples drawn at the time of export of goods
10.1 Three sets of samples are drawn at the time of examination or
sealing of export goods. Two sets of samples, duly sealed, are handed
over by the Central Excise Officer examining the consignment to the
exporter or his authorised agent for delivery to the Custom Officer at
the point of export. The Central Excise Officer for his record retains
the third set of sample.
10.2 The Customs Officer will check the export goods with the sample
before allowing export. The samples shall be dealt with in accordance
with instructions/standing orders of the Board or the Commissioner of