Valuation of captively consumed goods sent back for fresh adjudication after Supreme Court remand in the assessee's own case.

Valuation of captively consumed yarn under Rule 6(b)(1) of the Central Excise (Valuation) Rules, 1975 was directed to be reconsidered because the Supreme Court had already remanded the assessee's own earlier case for adjustment of certain costs on the basis of further material. Applying that approach to the same valuation issue, the Tribunal held that fresh adjudication was appropriate. The matter was sent back to the adjudicating authority for de novo adjudication, with an opportunity to produce additional information and for duty to be recomputed after hearing the assessee.

---

---

Issues: Whether the demand required remand for de novo adjudication in view of the Supreme Court's decision in the assessee's own case on valuation of captively consumed goods.

Analysis: The dispute concerned valuation of yarn captively consumed by the assessee, where duty had been paid under the Central Excise Rules, 1944 and valuation was undertaken under Rule 6(b)(1) of the Central Excise (Valuation) Rules, 1975. The Tribunal noted that, in the assessee's own case for an earlier period, the Supreme Court had indicated that the assessee was entitled to adjustment of certain costs and had remanded the matter for reconsideration on the basis of material to be produced. Since the same valuation issue arose here, the Tribunal found that the proper course was to send the matter back for fresh adjudication with opportunity to furnish additional information and have the duty recomputed accordingly.

Conclusion: The matter was remanded to the adjudicating authority for de novo adjudication, with recalculation of duty after granting opportunity of hearing and permitting additional material.

---