Central Excise - Valuation - Suggestion to fix Notional Profit - Regarding - Central Excise - 6/14/89-CX.1

Central Excise - Valuation - Suggestion to fix Notional Profit - Regarding F. No. 6/14/89-CX.1 Dated 25-7-1989 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Valuation - Suggestion to fix Notional Profit - Regarding. As per the rule 6(b)(ii) of the Central Excise (Valuation) Rules, 1975, assessable value of goods consumed captively is determined by adding a reasonable margin of profit to the cost of manufacture. Lately, suggestion has been made from several parties to amend the rule 6(b) (ii) by fixing a uniform percentage of profit margin. 2. You are requested to examine the matter in respect of commodities captively consumed on payment of duty within the factory of production and send your report on the following points : - (a) Name of the unit. (b) Description of goods captively used on payment of duty. (c) Method of valuation for Central Excise purpose - whether based on price of comparable goods or based on cost of manufacture plus profit. (d) If based on cost of manufacture plus profit, indicate : (i) the cost of manufacture, and (ii) the percentage of net profit considered for the purpose of determining value, during last five years. (e) Whether the unit in is SSI sector or organised sector. (f) Whether the profit margin so added is based on trading account/balance sheet for similar goods or other goods. (g) If the value is based on price of comparable goods, indicate cost of manufacture of subject goods, if declared and the price of comparable goods. (h) What in the opinion of the Asstt. Collector/Superintendent would be the approximate percentage of profit that could be gained by selling similar goods. (survey could be undertaken with other manufacturers who sell similar class of goods). (i) Suggestions for fixing statutory rate of percentage of profit in respect of different industries for the purpose of Central Excise valuation of Excisable goods meant for captive consumption where duty is required to be paid. (j) Remarks, if any You are requested to send the requisite reply within a month.