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2013 (3) TMI 550 - CESTAT NEW DELHIValuation - Captive Consumption - Supply of acid slurry to their sister unit for its captive consumption - Duty demanded on the value determined under Rule 8 of Central Excise (Valuation) Rules, 2000 i.e. on 115% of the cost of production as appellant did not furnish the cost data or cost of production - Held that:- On bare reading of the Rule 8 it is evident that if the clearance of the excisable goods is only for captive consumption the excise duty has to be worked out on the valuation based upon the 115% of the cost of manufacture. Thus it is evident that cost of manufacture is the most relevant aspect of this adjudication. Neither in the show cause notices nor in the order-in-original nor in the order-in-appeal there is even suggestion that the officers tried to work out the cost of manufacture. The only reason to justify this valuation as given in the impugned order is that the appellant was non-cooperative and despite request he did not furnish any information regarding his manufacturing cost. That by itself does not vest the adjudicating authority or the Appellate Authority with powers to arbitrarily fix the cost of manufacture without making any efforts to scrutinize the relevant record of the assessee. - Matter remanded back for reconsideration.
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