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CCE-Jaipur-II Versus M/s. Hindustan Zinc Ltd.

2015 (12) TMI 802 - CESTAT NEW DELHI

Valuation - Determination of assessable value - Clearances of ore concentrate made by Rajpura Dariba Mines unit of the respondent company - Held that:- While determining the assessable value under Rule 6 (b) (ii) of the Central Excise Valuation Rules, 1975, the dispute is only about the profit margin to be added. While according to the respondent, the profit margin of 10 per cent has been correctly adopted, according to the department’s profit margin to be adopted for determination of value unde .....

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it margin in respect of the ore concentrate unit only - Decided against revenue. - Appeal No. E/1223/2006-EX [DB] - Final order no. 51947/2015 - Dated:- 22-5-2015 - Shri Rakesh Kumar, Member (Technical) And Mrs. Sulekha Beevi C.S., Member (Judicial) For the Petitioner : Shri Pramod Kumar, JCDR For the Respondent : Shri B.L. Narsimhan, Advocate ORDER Per: Rakesh Kumar The facts leading to filing of this appeal by the Revenue are, in brief, as under: 1.1 The respondent company are engaged in manuf .....

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975, i.e., on the cost of production plus the profit which the assessee would have normally earned on sale of the goods captively consumed. In this regard, the respondent had added a notional profit of 10 per cent, even though, during the period of dispute, the ore concentrate unit was incurring loss. The cost of production adopted was the cost of production for the previous year. The department was of the view that the value under Rule 6 (b) (ii) should be determined on the basis of the current .....

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sioner, while holding that current year s cost of production is to be adopted held that since during 1999-2000, ore concentrate unit was making loss he adopted the notional profit margin of 10%. Accordingly, he confirmed the total duty demand of ₹ 21,14,119/- against the respondent along with interest on it under section 11 AB and besides this, imposed penalty of ₹ 5 lakh on the respondent under Rule 173Q. 1.2. Against this order of the Commissioner while the respondent filed an appe .....

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ded the matter to Original Adjudicated Authority in respect of the appeal filed by the respondent. The Revenue is in appeal against the CCE (appeals) s order dismissing the Department s appeal. 2. Heard both the sides in respect of the Revenue s appeal. 3. Shri Pramod Kumar, ld. JCDR, assailed the impugned order of the Commissioner (appeals) in respect of the profit margin to be adopted and pleaded that in terms of the provisions of Rule 6 (b) (ii) of the Central Excise Valuation Rules, 1975, th .....

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facts of this case as the M/s. Raymond Limited was the multi-product company engaged in manufacture of several goods like fabrics and cements and these goods were being manufactured out in different factories, while this is not so in the present case; that earlier in respect of the Jawar Mines of the Appellant company, the ore concentrate was being cleared to smelting unit on payment of duty on the value determined under Rule 6 (b) (ii) and at that time, overall profit margin of respondent compa .....

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r (appeals) and pleaded that the judgment of Larger Bench of the Tribunal in the case of Raymond Limited Vs. CCE-Aurangabad has been correctly relied upon by the Commissioner (appeals); that in this judgment the Larger Bench of the Tribunal has held that the profit or loss made by the manufacturer from other activities, be it the manufacture of other goods or trading in other goods is of no relevance while determining the assessable value of the goods cleared for captive consumption under Rule 6 .....

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gment of the Tribunal in the case of Raymond Limited (Supra) held that when the ore concentrate unit was incurring loss, the notional 10 per cent profit margin has been correctly adopted and there was no justification for adopting the profit margin of the respondent company which during that year was 15.24 per cent; and that the ratio of this judgment of the Tribunal, which is in respect of the respondent s own case, is squarely applicable to the facts of this case. He, therefore, pleaded that t .....

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