Central Excise - Valuation - Suggestion for taking the cost of production of the previous year for computing assessable value - Regarding - Central Excise - 6/32/87-CX.1

Central Excise - Valuation - Suggestion for taking the cost of production of the previous year for computing assessable value - Regarding F.No. 6/32/87-CX.1 Dated 31-3-1988 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs New Delhi Subject : Central Excise - Valuation - Suggestion for taking the cost of production of the previous year for computing assessable value - Regarding. I am directed to refer to the letter C. No. IV/16/13/87 T. U., dated 28.7.87 of Collector of Central Excise, Cochin on the above subject, a copy of which had also been endorsed to other Collectors of Central Excise, South Zone. 2. The matter has been exmained by the Board. The cost of production of goods for the current year can always be ascertained through established accounting principles. The cost of raw materials, cost of labour etc. for the current year are always readily available. The help of a cost accountant could also be taken to ascertain the cost of production of a particular commodity for the current year. As such the proposal of CCE, Cochin for taking the previous year's figures of cost of production for valuing goods which are captively consumed has not been found acceptable as the current cost of production is relevant under Section 4, in respect of goods captively consumed.