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2017 (1) TMI 1457 - CESTAT NEW DELHIValuation - goods cleared to sister units - profit element - includibility - whether the assessee has undervalued the goods i.e. Sponge iron by not including the profit element? - Held that: - The CBEC initially issued circular No. 354/81/2000-TRU dated 30.06.2000, wherein how to arrive at the value has been explained in Para 21. This was further clarified vide circular No. 692/8/2003-CX dated 13.02.2003 to work out the cost of production for captive consumption in accordance with CAS-4. Therefore, the objection raised by audit is not correct as the goods were consumed under Notification No. 67/95-CE dated 16.03.1995 and in these cases value of goods cannot be determined under Rule 8 of the Central Excise Valuation (Determination of Price of Excisable goods) Rules, 2000. Valuation - captive consumption - whether the assessee has failed to include the cost of packing materials in respect of Sponge iron captively consumed? - Held that: - the cost of packing materials has already been taken in excess when compared to the assessable value of packing material according to Audit Report - the charges made in the show cause notice regarding Undervaluation of the Sponge Iron captively used and there-by value of final product has been suppressed, is not sustainable and is liable to be dropped. Appeal dismissed - decided against Revenue.
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