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2013 (10) TMI 398 - AT - Central ExciseValuation under Rule 8 of the of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 – Detergents and Sulphonic acid supplied to sister concern – Held that:- Cost of production as certified in the Chartered Accountant certificate dated 7-9-2002 i.e. Rs. 52,000/- per M.T. for Surf Excel, the detergent powder and Rs. 62,000/- per M.T. for sulphonic acid should have been adopted, while according to the appellant this costing had been wrongly done on the insistence of the department by including the head office expenses and marketing and distribution expenses which are not required to be included in the costing in terms of CAS-4 – Costing certificate are not in the CAS-4 format and accordingly it cannot be said as to whether the costing had been done in terms of CAS-4 costing standard or not - Matter has to be remanded for de novo adjudication after determining the cost of production of both the products during each financial year during the period of dispute strictly in terms of CAS-4 standard and in that format by a Cost Accountant appointed by the department and in the light of the Cost Accountant’s certificate regarding the cost of production of the products, in question, during each financial year, the matter must be re-adjudicated. Limitation - Appellant submitted the Chartered Accountant certificate for the period from 1-7-2000 to December 2002 only on 27-3-2003 and that while after 1-7-2000 on the introduction of new Valuation Rules, the appellant were supposed to submit costing certificate from 1-7-2000 immediately, they in spite of repeated requests made by the Range Officer submitted the same only on 27-3-2003 claiming a much lower cost of production, than that certified in the certificate dated 7-9-2002 – Held that:- Commissioner’s order is silent on the appellant’s claim that they had informed the department from time to time during the period of dispute regarding the assessable value of sulphonic acid done Surf Excel bulk detergent along with the Chartered Accountant’s certificate, for correct determination of the question of limitation and the linked question of imposition of penalty under Section 11AC, the matter remanded for de novo adjudication - Impugned order is set aside and the matter is remanded to the Commissioner for de novo adjudication.
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