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2015 (3) TMI 1044 - SC - Central ExciseValuation of goods - Captive consumption - Calculation of excise duty - The respondent Department felt that the aforesaid method adopted by the appellant assessee in calculating the excise duty and paying the same in respect of the captive consumption was in-appropriate. As per the Department such a duty should have been paid on the same price at which the unit was sold by the appellant in the market. - period 1.4.1994 to 1.6.1998 - Held that:- As it is clear from the reading of the Section 4, clause (b) which is attracted in the present case stipulates that in a case like this, the value has to be determined in such a manner as may be prescribed. This manner is prescribed in Rule 6 (b)(i) of the Central Excise (Valuation) Rules, 1975. A bare reading of Rule 6(b) manifestly points out that in those cases where the excisable goods are not sold by the assessee but are consumed by assessee himself, namely, in case of the captive consumption, the value of comparable goods produced or manufactured by the assessee or by any other assessee is to be taken into consideration. However, the proviso to this clause (i) of sub-rule (b) provides that in determining the value in the aforesaid sub-clause the proper officer shall make such adjustments as appear to him reasonable, taking into consideration all relevant factors, and in particular, the difference, if any, in the material characteristics of the goods to be assessed and of the comparable goods. From the process explained by the appellant itself it is clear that up to the stage (iv) above, the process is common in respect of the production of the yarn whether it is to be consumed by the appellant itself or it is to be sold in the market. It is, thereafter, when it comes to process mentioned at serial nos. (v) and (vi), the same is necessitated for the purpose of sale in the open market and therefore costs incurred while undertaking these processes has to be excluded in arriving at the value at which excise duty is payable for the yarn domestically consumed. - appellant shall be entitled to adjust the cost which is incurred as mentioned in process (v) & (vi) of the sales in selling costs. Since this benefit is wrongly denied to the appellant by all the authorities below, for this limited purpose we remand the case back to the adjudicating authority. Before the Adjudicating authority it would be permissible for the appellant to supply the figures of the cost incurred on the aforesaid processees and after verifying the same himself about the genuineness of such cost incurred, the adjudicating authority shall recalculate the value for the purposes of excise duty while giving adjustment of the aforesaid costs and raise fresh demand on that basis. - Decided in favour of assessee.
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