2004 (10) TMI 228 - AT - Central Excise

Summary

The Appellate Tribunal CESTAT, Bangalore ruled that cone winding charges incurred after duty payment on yarn are post-manufacturing expenses and should not be added to the cost of yarn. Notional profit can be added while computing the value of captively consumed goods, as per Rule 6(b)(ii) of the Valuation Rules and the decision in Union Carbide India Ltd. v. CCE, Calcutta. The department's contention regarding cone winding charges was rejected, and the appeal was partly allowed.