TMI Blog2017 (2) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... @ 100% equivalent to the labor charges - whether the overhead charges are to be 100% or 300% of labor charges? - Held that: - in the subsequent period neither the department carried out any costing verification nor the appellants have submitted any cost data but they continued to take overhead charges @ 100%. In this case, even if we go as per best judgment since the 100% overhead charges was acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellants are engaged in the manufacture of pipes. They are undertaking the Turnkey Project to supply of pipes. As regards pipes, they are valuing the goods on cost construction method. For that purpose, for the cost of manufacture, earlier they were taking overhead expenses @ 300% of labour charges and filed their price list. Subsequently in the price list dated 21.8.1990, they have added ove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... verified the costing and allowed the 100% overhead charges. For the period involved in the present case, the appellant could not provided the C.A. certificate, only for that reason the overhead charges was considered as 300% instead of 100%. He submits that the department had no evidence to establish that the overhead charge is 300% and not 100%. The department itself after doing the costing by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntal Costing Wing. However, in the subsequent period neither the department carried out any costing verification nor the appellants have submitted any cost data but they continued to take overhead charges @ 100%. In this case, even if we go as per best judgment since the 100% overhead charges was accepted on the basis of costing done by the Cost Accountant that is more authentic and there is no ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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