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TMI Blog2018 (8) TMI 1676X X X X Extracts X X X X X X X X Extracts X X X X ..... ls' and 'printed sheets' captively consumed were subject to proceedings on the valuation adopted by following the cost construction basis. The notice pertained to the period from April 1997 to September 1997 for recovery of differential duty of Rs. 6,16,254/- and for the period from September 1997 to March 1998 for recovery of differential duty of Rs. 6,47,923/- by addition of notional margin of profit of 10% and these were confirmed. In the first round of litigation, following the decision of the Tribunal in order no. A/12/WZB/205/CI dated 4th January 2005, the matter was carried by Revenue to the Hon'ble Supreme Court, who, directing attention to the decision in West Coast Paper Mills Ltd v. Commissioner of Central Excise [199 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment by addition of the notional profit. Further reliance was placed in the decision of the Tribunal in Crompton Greaves Ltd v. Commissioner of Central Excise, Chandigarh [2002 (139) ELT 101 (Tri.-Del.)] wherein it was specifically held that addition of notional profit in assessable value is not permissible when the assessee's manufacturing activity is in loss. 4. Learned Authorised Representative, on the other hand, places reliance on the decision of the Hon'ble Supreme Court in Chackolas Spinning and Weaving Mills Ltd v. Commissioner of Central Excise, Cochin [2015 (322) ELT 167 (SC). 5. The decision of Hon'ble Supreme Court in re Chackolas Spinning and Weaving Mills Ltd, wherein the challenge of the assessee relied upon the losses incu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision in re Raymond Ltd enables the appropriate notional profit to be included subject to production of evidence that the amounts so computable was less than the 10% that is normally to be adopted. In re Crompton Greaves Limited, the factual determination of the profit element based on relevant data was emphasized upon. The contention of Learned Counsel is that they had been making loss; it would appear that this loss pertained to the sale of the finished products, viz., cigarettes. On the other hand, the exercise was to determine the assessable value of inputs used in the manufacture of cigarettes in the form in which it is finally presented for sale. The goods being entirely consumed within the factory does not have a comparison basis wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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