TMI Blog2006 (8) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... and Gold (Control) Appellate Tribunal, West Regional Bench at Mumbai in Appeal No. E/1021, 1022/2000-MUM. 2. Heard learned counsel for the parties. 3. The question involved in these appeals is about the valuation of milk crumbs, refined milk chocolate and four other products manufactured by the respondent - M/s. Cadbury India Limited, in its factory at Jnduri, Pune and captively consumed in that factory and other factories of the respondent in the manufacture of chocolate. No part of these products are sold by the respondent. 4. The respondent had sought valuation of these goods under Rule 6(b)(ii) of the Central Excise (Valuation) Rules, which provides for basing the valuation on such goods on the "cost of production on manufacture i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ively consumed goods. He has also relied upon paragraph 49 of the Supreme Court's judgment in Union of India v. Bombay Tyres International - 1AIR 1984 SC 420. 8. In further appeal the Tribunal set aside the orders of the Commissioner and the Assistant Commissioner. The Tribunal held that sub-rule (ii) of Rule 6(b) can be invoked only in a situation where the goods are not sold and there are no comparable goods. The Tribunal held that the expenses other than the cost of manufacture, cost of raw materials and the profit would not be includible in the assessable value. 9. The issue in the present case is about the value of the goods captively consumed by the respondent. The assessee has contended that there is no dispute that these interme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of this Court in Challapalli Sugar Ltd v CIT The Court was concerned with "written-down value". The "written-down value" had to be taken into consideration while considering the question of deduction on account of depreciation and development rebate under the Income Tax Act. "Written- down value" depended upon the "actual cost" of the assets to the assessee. The expression "actual cost" had not been defined in the Income Tax Act, 1922 and the question was whether the interest paid before the commencement of production on the amount borrowed for the acquisition and installation of the plant and machinery could be considered to be a part of the "actual cost" of the assets to the assessee. As the expression "actual cost" had not been defin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment to de mine the cost of production of captively consumed goods strictly in accordance with CAS-4. 14. The Tribunal in the case of BMF Beltings Ltd. v. CCE: 2005 E.L.T. 158 (Tri. - Bang.) for the period 1995 to 2000 has directed the department to apply CAS-4 for the determination of the cost of production of the captively consumed goods. In ITC v. CCE - 2005 (190) E.L.T, 119 the Tribunal held that the department has to calculate the cost of production in terms of CAS-4. Other decisions of the Tribunal, wherein it has directed that CAS-4 be applied for determination of the cost of production, are Teja Engineering v. CCE - 2006 (193) E.L 100 (Tri- Chennai), Ashima Denims v. CCE - 2005 (191) E.L.T. 318 (Tri-Mumbai) and Arti Industries v. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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