9911796707
TMI Blog2008 (12) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... he relevant period, they were clearing parts of tractors to their sister units. Duty was paid on the goods cleared to their sister units for further use in the manufacture of tractors. Duty was paid on these parts on the basis of value determined under Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. The value was so determined as 110% of the cost of production of the goods. However, the appellants were not possessed of the correct cost of production at the time of clearance. Their practice was to adopt the cost of production obtaining prior to 1st of April of the financial year during which the goods were cleared, and then estimate the assessable value as above. The correct cost of production ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he year 2006-07 for clearance of the subject goods for captive consumption. The verification report was submitted to the Dy. Commissioner of Central Excise having jurisdiction over the factory. This report stated thus : In this regard, the cost of production of various products of Tractor Division was verified from the SAP accounts as per CAS-4 Guidelines and the CAS-4 statements for the year 2006-2007 duly certified by M/s. Y.R. Doshi and Co., Cost Accountants, were also reviewed and based on the clarifications and explanations furnished by the assessee on certain variation in cost of production between the value of clearance and cost as per CAS-4 statements in respect of certain products/parts regarding material cost, Freight and perce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case inasmuch as the Commissioner did not consider basic records such as cost verification report for determining duty liability and the question of payment of interest would arise only in the event of any duty liability being fixed. Correct quantification of duty is being remanded to the learned Commissioner. All the accompanying issues will also be dealt with by him while quantifying the duty on the basis of the aforesaid report of the Dy. Director (Cost). 8. In the result, we set aside the impugned order and allow this appeal by way of remand directing the learned Commissioner to re-quantify the duty for the period of dispute in the mariner prescribed hereinabove and to decide on connected issues, of course, after giving the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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