2017 (5) TMI 1381 - AT - Central Excise

Valuation - includibility - whether the excise duty paid on inputs and notional profit is liable to be added in the assessable value of the final products manufactured and cleared by the appellant? - Held that - regarding the issue of inclusion of notional profit, no amount on account of profit can be added - since this factual aspect which observed by the Commissioner (Appeals) was not raised right from the SCN stage, at this stage, it is impractical for the appellant to come out with the Cost Accountant s certificate, therefore, even on the basis of cost certified by the appellant can be accepted subject to the correctness of the data on the basis of Books of Account - appeal allowed by way of remand.

Summary

Issues:
Whether excise duty paid on inputs and notional profit should be added to the assessable value of final products.

Analysis:
The main issue in this case was the inclusion of excise duty paid on inputs and notional profit in the assessable value of final products. The appellant argued that the Commissioner had already decided in their favor on this issue, but the matter was remanded back for re-adjudication due to discrepancies in the cost of manufacture calculation. The appellant contended that the quantification of notional profit was not disputed and should not have led to a remand. The appellant also cited a previous Tribunal decision in their favor to support their argument.

The Revenue, represented by the Asstt. Commissioner, supported the findings of the impugned order, emphasizing the importance of including notional profit in the assessable value.

The Tribunal carefully considered both sides' submissions and noted that the Commissioner (Appeals) had already decided that excise duty on inputs should not be included in the assessable value. Regarding notional profit, the Tribunal referred to a previous order in the appellant's own case where it was decided that no profit amount should be added. The Tribunal disagreed with the Commissioner (Appeals) on the requirement for a Cost Accountant's certificate, stating that the appellant's certified cost could be accepted based on the correctness of the data in their books of account. The Tribunal upheld the remand of the matter to the adjudicating authority to determine the correct value.

Ultimately, the appeal was disposed of with the decision that excise duty on inputs and notional profit would not be added to the assessable value, and the requirement for a Cost Accountant's certificate was set aside. The remand for determining the correct value was upheld.

This judgment clarifies the treatment of excise duty paid on inputs and notional profit in the assessable value of final products, emphasizing the importance of accurate cost calculations and the relevance of previous tribunal decisions in similar cases.