9911796707
TMI Blog2011 (2) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... handrasekharan This is a departmental appeal filed against the order-in-original 09/CEX/2006 dated 27.04.2006 passed by the Commissioner of Central Excise & Customs, Nashik. 2. The facts of the case are as follows. 3. M/s. Mahindra & Mahindra Ltd., Plant No.2 - the respondent having its factory at 80, MIDC, Satpur, Nasik are the manufacturer of parts of motor vehicles, di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; Since the assessee in this case had not included the assessable value that the expenses on account of corporate head office, advertising, marketing and financial costs, the department was of the view that they have under valued the products and accordingly differential duty to the extent of Rs.1,23,63,238.66 is liable to be recovered on the clearances of automobile parts for the period from Dece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cost and Works Accountants of India had also issued guidelines (CAS 4) for determination of cost of production wherever the goods are captively consumed are not sold. As per these guidelines, especially CAS 4, can be included in the cost of production is the cost of Material Consumed, Direct Wages and Salaries, Direct Expenses, Works Overheads, Quality Control Cost, Research & De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udable in the cost of production as per the Chartered Accountant Certificate produced by the assessee. The same cost has already been included in the cost of vehicle which is the final product and not included in the cost of individual component. In this view of the matter the Commissioner dropped the demand raised in the show-cause notice and also dropped the charges of penalty and recovery of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CAS 4 will apply not only prospectively but also for the period prior to its issue since it only lays down the principle of computing the cost of production in the case of captive consumption. The appeal filed by the department in the said case was dismissed by the hon'ble apex court in 2006 (200) ELT 353 (S.C.). 7. In view of this position the contention of the department ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
