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TMI Blog2015 (12) TMI 802X X X X Extracts X X X X X X X X Extracts X X X X ..... d and ore concentrate is manufactured. During the period of dispute, i.e., during 1999 to 2000, the ore concentrate attracted Central Excise Duty. The respondent were clearing the ore concentrate to their various smelting unit on payment of duty on the value determined under Rule 6 (b) (ii) of the Central Excise Valuation Rules, 1975, i.e., on the cost of production plus the profit which the assessee would have normally earned on sale of the goods captively consumed. In this regard, the respondent had added a notional profit of 10 per cent, even though, during the period of dispute, the ore concentrate unit was incurring loss. The cost of production adopted was the cost of production for the previous year. The department was of the view tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment's appeal for enhancing the profit margin to 15.24 per cent, remanded the matter to Original Adjudicated Authority in respect of the appeal filed by the respondent. The Revenue is in appeal against the CCE (appeals)'s order dismissing the Department's appeal. 2. Heard both the sides in respect of the Revenue's appeal. 3. Shri Pramod Kumar, ld. JCDR, assailed the impugned order of the Commissioner (appeals) in respect of the profit margin to be adopted and pleaded that in terms of the provisions of Rule 6 (b) (ii) of the Central Excise Valuation Rules, 1975, the value of the goods cleared for captive consumption is to be determined on the basis of cost of production plus profit, if any, which the assessee would have normally earned on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals); that in this judgment the Larger Bench of the Tribunal has held that the profit or loss made by the manufacturer from other activities, be it the manufacture of other goods or trading in other goods is of no relevance while determining the assessable value of the goods cleared for captive consumption under Rule 6 (b) (ii) and for this purpose only the profit margin which the assesse would have earned on the sale of the goods cleared for captive consumption which is to be considered and not the overall profit of the company; that in the respondent company's own case in respect of other mine, where the identical issue regarding valuation of the ore concentrate cleared for captive consumption was involved, the Tribunal vide judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had reflected the profit 15.24 per cent, it is this profit which is sought to be adopted by the department for determining the assessable value of ore concentrate. 8. We find that the identical issue was involved in the respondents case in respect of the another unit which has been decided by the Tribunal vide judgment dated 28/4/2010 reported in 2011 (263) ELT 112 Tri-Del wherein the Tribunal relying upon the Larger Bench's judgment in the case of Raymond Limited (Supra) had held that there is no justification for adopting the profit margin of the respondent company during 1999-2000 in its balance sheet and that the profit margin to be adopted is the profit margin in respect of the ore concentrate unit only. We do not find any reason to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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