Rule 8 valuation applies only to captively consumed goods used in manufacturing, not construction of own premises.

Rule 8 valuation under the Central Excise Valuation Rules applies only when excisable goods are captively consumed in the manufacture of other goods. Cement used by the assessee for construction of its own premises did not satisfy that condition, and the amended definition of "industrial consumer" under the Legal Metrology Rules did not change the use of the goods for a non-manufacturing purpose. The captive consumption circular also supported Rule 8 only where the goods are used in further manufacture. On these facts, the refund claim was not admissible and relief was denied.

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Issues: Whether the assessee was entitled to refund on the basis that Rule 8 valuation applied to cement manufactured by it and consumed for its own construction after the amended definition of "industrial consumer" under the Legal Metrology (Packaged Commodities) Rules, 2011.

Analysis: Rule 8 of the Central Excise Valuation Rules applies only where excisable goods are not sold and are instead used by the assessee, or on its behalf, in the production or manufacture of other articles. The amended definition of industrial consumer did not alter the essential fact that the cement was being used by the assessee for construction of its own premises and not for manufacture of another product. The circular on captive consumption also contemplated valuation under Rule 8 only when the goods are used in further manufacture. On these facts, the precondition for applying Rule 8 was not satisfied.

Conclusion: The refund claim was not admissible and the rejection of the claim was ; the assessee was not entitled to relief.

Ratio Decidendi: Rule 8 valuation is attracted only when captively consumed excisable goods are used in the manufacture of other goods, and not when they are consumed for construction or other non-manufacturing purposes.

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