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TMI Blog2015 (11) TMI 1580X X X X Extracts X X X X X X X X Extracts X X X X ..... is in 1981, 1982&1983 while the show cause notice is issued on 17/8/87. 4. Learned departmental representative would draw our attention to the findings recorded by the adjudicating authority as also the grounds of appeal taken by the revenue. It is his submission that the adjudicating authority should have added profit margin for arriving at assessable value based upon the provisional balance sheet. It is his further submission that such calculation of assessable value was clarified by CBSC in circular no. 258/92-96-cs 13-10-1996. He would then submit that specifically is this case what is required is allocation of expenses as indicated in show cause notice. 4. Learned counsel appearing on behalf of the respondent draws our attention to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said circulars are as under: Year Net sales (Rs in 000) (Sales minus Excise Duty) Profit before Tax (Rs in 000) Cost of production (b.c) % of profit to be added to cost of production (c x 100/d) a b C d E 1981 550.879 54.503 496.375 10.98 1982 557.143 68.365 488.778 13.99 1983 567.694 42.364 525.330 8.06 1984 630.319 30.219 600.100 5.04 On going through the above tabulated data, it is clear that in respect of only one year, i.e., 1982, margin of profit was 13.99% which exceeded 10% already added by the notice to the cost of production on which duty was already paid. 11.5 I now wish to turn my attention to the month-wise cost of production for the year 1982. Since the Annexure to notice dt 17-8-87 was bgeref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0556 627785 22771 December 3302369 3002154 3422155 1026646 990711 51332 49536 1077979 1040246 37733 Total 12652927 11502661 13111883 4130243 3985672 14571 11.6 Moreover, I observe that the Dept adopted the method of working out assessable value/margin of profit as follows: cost of concentrated dyes + excise duty on concentrated dyes + cost of formulation = cost of manufacture of formulated dyes; selling price of formulated dyes - cost of manufacture of formulated dyes = manufacturing profit of formulated dyes. In this connection, I am inclined to agree with the notice's contention that the assessable value/cost of production of concentrated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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