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<h1>Valuation of captively consumed goods requires cost of production determined strictly under CAS-4 accounting standards.</h1> Cost of production for captively consumed goods shall be determined strictly in accordance with Cost Accounting Standard 4 (CAS-4) issued by the Institute of Cost & Works Accountants of India; this standard governs capacity determination, overhead allocation and cost of production measurement for valuation under the Central Excise Valuation Rules and modifies earlier Board guidance on captive consumption valuation.
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