Captive consumption valuation under excise rules required fresh verification of wholesale sale prices before final determination.

Assessable value of toaster parts captively consumed had to be determined under the appropriate Central Excise (Valuation) Rules basis, but the record did not establish whether identical goods had been sold to wholesale dealers during the relevant period. If such wholesale sales existed, the sale price would be relevant for valuation under Rule 6(b)(i); if not, another valuation basis would apply under the rules. Because the show cause notice was unavailable and the material was incomplete on this key factual question, the valuation could not be finally determined on the existing record. The impugned order was set aside and the matter was remitted to the adjudicating authority for fresh verification and decision after hearing the respondent.

---

---

Issues: Whether the assessable value of toaster parts captively consumed by the respondent was required to be determined under Rule 6(b)(i) of the Central Excise (Valuation) Rules, 1975, or under Rule 6(b)(ii) of those Rules, and whether the matter required remand for verification of sales to wholesale dealers.

Analysis: The dispute turned on the proper basis for valuation of goods consumed captively. The available material did not clearly show whether, during the relevant period, the respondent had sold identical goods to wholesale dealers. If such wholesale sales existed, the price realised for those sales would be relevant for determination of assessable value under Rule 6(b)(i). As the record was incomplete on this material aspect and the show cause notice was not available, the valuation issue could not be finally determined on the existing record.

Conclusion: The matter could not be decided conclusively on merits and had to be sent back for fresh verification and adjudication.

Final Conclusion: The impugned order was set aside and the dispute was remitted to the jurisdictional adjudicating authority for fresh decision after giving the respondent an opportunity of hearing.

Ratio Decidendi: Where the existence of wholesale sale price relevant to valuation is not ascertainable from the record, the proper course is to remand the matter for fresh determination of assessable value on the basis prescribed by the applicable valuation rule.

---