9911796707
TMI Blog2011 (2) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri. Ashok Jindal, Shri. P.R. Chandrasekharan, JJ. Appearance Shri Kishori Lal, SDR, for appellant Shri Bharat Raichandani, Advocate, For Respondent Per : P.R. Chandrasekharan This is a departmental appeal filed against the order-in-original 09/CEX/2006 dated 27.04.2006 passed by the Commissioner of Central Excise Customs, Nashik. 2. The facts of the case are as follows. 3. M/s. Mahindra Mahindra Ltd., Plant No.2 - the respondent having its factory at 80, MIDC, Satpur, Nasik are the manufacturer of parts of motor vehicles, dies etc., falling under chapters 82 and 87 of the Central Excise Tariff Act, 1985. These parts are cleared by the assessee to its own units situated at plant No.1, Nasik, Kandivali, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 27.04.06 (referred supra). The learned Commissioner observed that the Institute of Chartered Accountants of India had issued Accounting Standards 2 (AS 2) for the purposes of determination of cost of production in a case of stock transfer of goods. Similarly the Institute of Cost and Works Accountants of India had also issued guidelines (CAS 4) for determination of cost of production wherever the goods are captively consumed are not sold. As per these guidelines, especially CAS 4, can be included in the cost of production is the cost of Material Consumed, Direct Wages and Salaries, Direct Expenses, Works Overheads, Quality Control Cost, Research Development Cost, Packing cost, and Administrative Overheads relating to productio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enses are includable in the assessable value. In other words what is stated is that CAS 4 provisions will not apply prior to 1.3.2003. 6. The learned Counsel for the assessee M/s. Mahindra Mahindra Ltd. on the other hand contested that in case of M/s. Cadbury India Ltd. vs. Commissioner of Central Excise, Pune - 2001 (135) ELT 510 (Tri. Mum) it has been held that the provisions of CAS 4 will apply not only prospectively but also for the period prior to its issue since it only lays down the principle of computing the cost of production in the case of captive consumption. The appeal filed by the department in the said case was dismissed by the hon'ble apex court in 2006 (200) ELT 353 (S.C.). 7. In view of this position the conten ..... X X X X Extracts X X X X X X X X Extracts X X X X
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