2006 (9) TMI 34 - SC - Central Excise

Valuation(Central Excise)- Principal laid in CAS-4 is applied while determining the value of the captively consumed-Tribunal decided against assessee and the said has not been not challanged by the assessee

Summary

Issues:
1. Classification of goods
2. Applicability of principles in CAS-4 for determining value of captively consumed goods
3. Percentage of profit to be added while computing value under rule 6(b)(ii) of the Central Excise (Valuation) Rules, 1975

Analysis:
1. The Tribunal decided against the assessee on the classification issue, which was not challenged and thus attained finality.
2. Regarding the applicability of CAS-4 principles, the Senior Departmental Representative acknowledged their relevance and requested the matter to be sent back to the original authority for valuation based on CAS-4 principles. The Tribunal agreed and directed the application of CAS-4 principles in line with a previous judgment in a similar case.
3. On the matter of profit percentage, the Tribunal ruled that the overall profit of the group cannot be considered, and only the notional profit related to the product in question should be added. The Tribunal fixed the notional profit at 10% of the product cost based on previous notices issued by the department to the assessee.
4. The revenue did not appeal the Tribunal's decision on the profit percentage issue, and the findings were confirmed due to a concession made by the revenue's counsel.
5. The revenue contested the concession made regarding the applicability of CAS-4 principles post-July 1, 2000, but the Court declined to entertain this argument as it was not raised in the appeal and the concession was not challenged earlier.
6. The appeal was dismissed as no merit was found, and costs were not awarded. The Court emphasized that the findings based on concessions should not be taken as precedent for future cases.