TMI Blog2024 (3) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... ting Authority has considered the notional cost of raw materials, which is not correct, therefore, the impugned order is set aside. The impugned order set aside - Appeal allowed. - HON BLE MR. ASHOK JINDAL , MEMBER ( JUDICIAL ) And HON BLE MR. K. ANPAZHAKAN , MEMBER ( TECHNICAL ) Ms. Payal Bharwani , Chartered Accountant for the Appellant Shri K. Chowdhury , Authorized Representative for the Respondent ORDER Per Ashok Jindal : The appellant is in appeal against the impugned order wherein their application for special rate of value addition at the rate of 73%, was rejected by the authorities below. 2. The facts of the case are that the appellant was engaged in the manufacture of pharmaceutical products in their factory located in the State ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value addition rate formularized and as per the said formula, the actual cost of the raw materials incurred during the given period should be considered for the purpose of computing value addition and not the notionally arrived value on the basis of mathematical formula. The adjudicating authority has taken the notional value of cost of raw materials whereas the actual cost of raw materials is to be taken into account to arrive at the special valuation rate. Therefore, the impugned order is not sustainable in the eyes of law and she prays that the impugned order is to be set aside. 4. The ld.A.R. for the Revenue supported the impugned order. 5. Heard both sides and considered the submissions made from both sides. 6. We have also gone throug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fuel consumed if eligible for input credit under CENVAT Credit Rules, 2004 plus Value of said goods available as inventory in the unit but not cleared, at the end of the financial year, less Value of said goods available as inventory in the unit but not cleared, at the end of the financial year preceding that under consideration. Further, Special rate would be the ratio of actual value addition in the production or manufacture of the said goods to the sale value of the said goods excluding excise duty, Value Added Tax and other indirect taxes, if any, paid on the goods. 8. From the above provisions, it is clear that for fixation of special valuation rate, the actual cost of raw materials is to be considered only not the notional value. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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