TMI Blog2013 (5) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... we have not gone through the submissions as regards the limitation etc. and the appellants are at liberty to raise the same before the adjudicating authority. - Appeal No. 3830 of 2012 - - - Dated:- 27-2-2013 - Mrs. Archana Wadhwa and Mr. Sahab Singh, JJ. For the Appellant: Shri B.L. Narasimhan, Advocate For the Respondent: Shri Devender Singh, A.R.(Jt.CDR) JUDGEMENT Per Mrs. Archana Wadhwa: After dispensing with the condition of pre-deposit we proceed to decide the appeal itself inasmuch as we find that the disputed issue requires factual verification which can only be done at the level of the original adjudicating authority. 2. The dispute relates to the valuation of the appellant s final product. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... development costs, administrative overheads relating to manufacturing are to be absorbed in the production cost on the basis of the normal capacity or actual capacity utilization of the plant whichever is higher. 2.14.6 The department has simply divided these fixed overheads between the excisable and non-excisable and non-excisable and to calculate the actual cost of these fixed overheads to be loaded in the value of the goods, the department has followed the CAS -4 method. They have firstly divided fixed overheads by the normal production capacity of the machine (being higher one) to work out the cost per unit and then multiplied the same by the capacity utilized to load the cost proportionately into the goods produced, according to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he cost of production of each and every product cleared from the factory and I hold accordingly. 4. As is seen from above, the Commissioner did not consider the appellant plea as regards the distribution overhead expenses etc. and every principle laid down in CAS-4 and has simply observed that assessable value has been calculated in accordance with the provisions of CAS-4. We find that para 5.9 of CAS -4 lays down as under: 5.9 Absorption of overheads Overheads shall be analysed into variable overheads and fixed overheads. Variable Overheads are the items which change with the change in volume of production, such as cost of utilities etc. Fixed overheads are the items whose values do not change with the change in volume of productio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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