Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 1676 - AT - Central ExciseValuation - captive consumption - addition of notional margin of profit of 10% - rule 6(b)(ii) of Central Excise (Valuation) Rules, 1975 - Held that:- The valuation to be adopted for such captive consumption poses problems which led to the incorporation, within the rules, of a notional profit on the cost of production. Therefore, irrespective of whether the goods are sold or used entirely for captive consumption, it is not just the cost of production but the profits that would have been earned had the goods been sold outside that was required to be included for the purpose of assessment of duty. The goods being entirely consumed within the factory does not have a comparison basis with sales made by the appellant or, by anybody else, of like goods. At the same time, the appellant is unable to show that the assessable value adopted by the lower authorities does not reflect the cost of production and the profit that might have been earned even if these goods have been sold by the assessee or purchased by the assessee from outside. A loss on the product that is cleared finally using the impugned goods as an input is not relevant for determining the notional profit envisaged in rule 6(b)(ii) of Central Excise (Valuation) Rules, 1975. Appeal dismissed - decided against appellant.
|