9911796707
TMI Blog2004 (8) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... at. We find that the Commissioner in his Order-in-Original has found that BMF-I has not calculated certain components prescribed by the Board and also not filed price declarations. From the order of the Commissioner, it is not possible to us to know whether the cost of production taken by the investigating authority contains administrative overheads in relation to activity other than manufacturing activities like marketing, project management, corporate office expenses, etc. which are required to be excluded as per CAS-4 (Cost Accounting Standard-4). There cannot be sale to self. Therefore selling expenses are to be excluded. The appellants have not shown that how they are concluding that the selling distribution overheads are included in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lhi - 2000 (119) E.L.T. 718 (Tribunal -L.B.). (iii) The cost of production contemplated under Central Excise Valuation Rules, 1975 or under Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 shall not include elements like - Administrative overheads and Selling Distribution expenses. He pleaded that cost of production and cost of sale are two different things. The cost of production has to be determined for captively consumed goods as has been notified by the Ministry under their Letter No. 6/29/2002-CX-I (Circular No. 692/08/2003-CX.), dated 13th February 2003 in accordance with CAS-4, includes Administrative overheads relating to production activity only and it does not include selling distribution expenses. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AS-4 also gives the scope of overheads to be included. He also stated that the appellants did not file any price declaration for the rubber compound cleared by them to their Chennai factory since June 1995 when they started stock transfer. They were filing the price declarations for other products manufactured by them. For five years the value remained static in their invoice despite increase in the cost of various factors constituting the cost of the product. It shows their clear intention of suppressing the correct assessable value of the disputed goods with an intent to evade payment of duty. The Commissioner has gone by the coast data and Board's Circular on the subject and determined the assessable value. Therefore, the order, of the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... From 1-7-2000 since Central Excise Valuation (Determination of Price of Excisable Goods) Rules 2000 came into effect, assessable value was determined as per these Rules from 1-7-2000. The plea of the appellants that there is no revenue loss to the Department since duty paid by them at BMF-I was availed as credit at BMF-II was not accepted by the Commissioner on the ground that during the period from 2-6-1998 to 28-2-1999, there was a restriction on availment of Modvat credit to the extent of 95% of duty paid. Therefore their claim of revenue neutrality is not correct. Since the appellants had not adopted the correct value as required under the rules and they also did not file the price declarations and adopted incorrect assessable value fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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