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TMI Blog2017 (3) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... for Respondent ORDER Per Raju The appellants in this case are engaged in the manufacture of concentrated dyes which are further processed by mixing and dilution to yield formulated dyes. They were paying duty at the intermediate stage on concentrated dyes under Rule 6(b)(ii) of the erstwhile Central Excise Valuation Rules, 1975 on the basis of cost of manufacturing and notional profit 10%. How ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat in this case the Commissioner has not added actual profit in the year 1983 & 1984 when the profit was only 5.04% and 8.06% only. But has added the notional profit of 10% whereas for the year 1982 for limited period of five months he has added a profit of 13.99%. It was submitted that department can not resort to pick and choose and has to apply law uniformity. Further they have all along decla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Chackolas Spinning & Weaving Mills (supra) has been observed as follows: - "4. As pointed out above, the yarn has been captively consumed by the appellant. In the production/manufacture of unprocessed fabrics. Rule 6(b)(ii) directly applies to such cases where the excisable goods are not sold but are used or consumed captively. Under Clause (i) of Rule 6(b), the value is to be based on the va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the notional profits could be taken into consideration and added while arriving at the value of captive material. This is exactly the exercise that was undertaken by the Department and has been upheld by the CESTAT. We may point out that ten per cent notional profit was added which has been found to be reasonable by the CESTAT relying upon the judgment in Union Carbide India Ltd. v. CCE, Calcut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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