CAS-4 valuation and product-specific notional profit upheld; fresh revenue challenge to Tribunal concession rejected.

Valuation of captively consumed goods was held to follow CAS-4 costing principles, and the revenue's attempt to challenge the earlier concession on that point was not entertained. In computing assessable value under rule 6(b)(ii), only profit relatable to the product in question could be added as notional profit; overall group profit could not be substituted. The Court also rejected a fresh contention raised for the first time in appeal against the Tribunal's recorded concession. The Tribunal's remand on valuation and its product-specific profit approach were therefore confirmed, and the appeal failed in full.

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Issues: (i) whether the value of captively consumed goods was required to be determined by applying CAS-4 costing principles; (ii) whether, in computing assessable value under rule 6(b)(ii), the profit addition had to be confined to the product in question and whether the revenue could raise a fresh challenge to the concession recorded before the Tribunal.

Issue (i): whether the value of captively consumed goods was required to be determined by applying CAS-4 costing principles

Analysis: The matter had been remitted by the Tribunal on the basis of the departmental concession that CAS-4 principles governed valuation of captively consumed goods. The revenue did not challenge that course in the appeal, and the Court declined to permit a fresh attack on that concession at the stage of hearing.

Conclusion: The remand to apply CAS-4 was affirmed and the revenue's challenge on this point was not entertained.

Issue (ii): whether, in computing assessable value under rule 6(b)(ii), the profit addition had to be confined to the product in question and whether the revenue could raise a fresh challenge to the concession recorded before the Tribunal

Analysis: The Tribunal had held that overall group profit could not be adopted and that only the profit relatable to the product in question could be considered as notional profit. That view rested on an earlier final order in the assessee's own case, which had not been appealed by the revenue. The Court also held that the revenue could not retract the concession made before the Tribunal or raise a new contention for the first time in appeal.

Conclusion: The product-specific notional profit approach was upheld and the revenue's wider profit-based contention was rejected.

Final Conclusion: The appeal failed in entirety and the Tribunal's disposal, including the remand on valuation and the exclusion of overall group profit, stood confirmed.

Ratio Decidendi: A concession on valuation made by the revenue before the Tribunal, if not challenged in appeal, cannot be withdrawn for the first time in further proceedings, and valuation of captively consumed goods must be confined to the relevant product-based assessable value under the applicable valuation rule.

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