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TMI Blog2010 (5) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... Guindy factory during the period 2001-02, by adopting the assessable value of materials/inputs used in the manufacture of intermediate goods along with addition of other elements as devised in CAS-4 for determination of the value of intermediate goods. He rejected the adoption by the assessees of the cost of production of inputs as the cost for inputs used in the manufacture of intermediate goods. This resulted in differential duty demand of Rs. 5,48,366/- on AA mix 915, AA mix 1015 and AA cans, together with interest. The Commissioner (Appeals) set aside the demand, accepting the assessees' contention that assessable value of EMD/zinc callot cannot be taken as the cost of the material, relying upon the apex court's judgment in Hind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove details are available in the Certificate dated 3.5.2003 issued by the Chartered Accountants M/s. Kalpesh Thakkar, Thane (Annexure 1). The question is how to determine the value of AA Mix 915 type and 1015 type manufactured by National Carbon Plant, for the purpose of payment of duty since the same is not sold but transferred to their Guindy factory and consumed in the Guindy factory. In terms of Rule 8 of Central Excise Valuation Rules, 2000 in such circumstances the value is to be determined based on cost of production + 15% notional margin. In terms of Government of India, Department of Revenue Circular No. 692/8/2003 Cx dated 13th February, 2003, the cost of production for the purpose of arriving at the assessable value of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. We have relied on the cost accounting records certified by the company's Cost Auditors and other financial records. Based on the information and explanations given to us and on the basis of generally accepted cost accounting principles and practices followed by the industry, we have certified the cost of production. The cost of materials consumed includes materials transferred from other units of the company valued as per Cost Accounting Records maintained Under Section 209(1)(d), in accordance with Clause 6 of CAS 4. Certificate indicating the cost of AA Mix 915, AA Mix 1015 and AA Cans are enclosed duly verified and signed by us. 3. It is not the case of the department as seen from the appeal memorandum that as per CAS-4, the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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