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2016 (11) TMI 37 - CESTAT NEW DELHIImposition of ADD - Polytetrafluoroethylene or PTEF - imported from Russia - correctness of method adopted by the DA while arriving at NIP considering a large number of captively produced and consumed inputs while manufacturing the subject goods by the appellant - the DA has adopted the norms of Rule 8 of Central Excise Valuation Rules, 2000 and CAS-4 governing transfer value and captive excisable inputs - the DA had been adding 22% return on capital employed in producing captive inputs for arriving at price - Held that: - neither AD Rule 1995 including Annexure III of the said Rules nor any other statutory provision mandated specifically the method to be adopted in dealing with captively used inputs while arriving at NIP. The admitted practice by the DA of allowing 22% return on capital deployed has been changed in the present case by the DA. We find no reason recorded for such sudden change inpractice. We also note that there is no reason recorded for adopting the Central Excise provision of Valuation (Rules 8) for captively used inputs. Rule 8 as in the present form mandate that the value of excisable goods captively consumed shall be 110% of cost of production. The said Rule is meant for excise duty levied. Admittedly, there is no provision in AD Rules or in Customs Tariff Act which mandates the application of such Rule to calculate NIP in antidumping investigations. It is apparent that DA has deviated from the consistent practice of valuation adopted by him in numerous other cases of captively used inputs while fixing NIP for subject goods. We do not find any legal reason for such deviation in the present case. In such a factual matrix, we find that NIP determined in the present case is faulty in so far as it relates to the treatment of captively used goods with specific reference to profit/ return on capital deployed. The matter has to be re-examined by the DA afresh after giving due opportunity to the interested parties to arrive at a finding in consonance with the legal provision applicable - Appeal disposed off - matter remanded - decided partly in favor of appellant.
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