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2015 (11) TMI 1580 - AT - Central ExciseValuation - Synthetic Organic dyes captively used in the manufacture of formulation of dyes - addition of profit margin for arriving at assessable value based upon the provisional balance sheet - adjudicating authority has not followed the board circular no. 258/92-96-cs 13-10-1996 while fixing the assessable value - Held that:- I observe that profit before tax on sales of previous year has to be considered while working out the percentage of profit to be added to cost of production in the instant case, since the figures of profit before tax for the relevant year are available from balance sheets for the relevant years, I propose to take the figures of the relevant year for computation of profit margin instead of taking previous year’s profit, as directed in the said circulars. The Dept adopted the method of working out assessable value/margin of profit as follows: cost of concentrated dyes + excise duty on concentrated dyes + cost of formulation = cost of manufacture of formulated dyes; selling price of formulated dyes - cost of manufacture of formulated dyes = manufacturing profit of formulated dyes. In this connection, I am inclined to agree with the notice’s contention that the assessable value/cost of production of concentrated dyes ought not to be worked out on the basis of selling price of formulated dyes.” In grounds of appeal, revenue has not come with any evidence which is contrary to the findings of the adjuicating authority. Therefore, the adjudicating authority was correct in coming to such a conclusion as in the impugned order and we hold that the impugned order is correct to the extent contested before us by the revenue is correct and does not require any interference. - Decided in favour of Revenue
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