Valuation of captive consumption: call to standardise profit margin for assessable value under excise valuation rules. The circular addresses valuation of goods consumed captively under rule 6(b)(ii) of the Central Excise (Valuation) Rules, 1975, which requires adding a reasonable profit margin to cost of manufacture. It notes proposals to fix a uniform statutory profit percentage and requests officers to report on unit details, valuation method used (comparable price or cost-plus), historic cost and profit percentages, sector classification, basis for margins, comparable prices where relevant, estimated sellable profit, and suggestions for industry-specific statutory profit rates for captive-consumed excisable goods.
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Valuation of captive consumption: call to standardise profit margin for assessable value under excise valuation rules.
The circular addresses valuation of goods consumed captively under rule 6(b)(ii) of the Central Excise (Valuation) Rules, 1975, which requires adding a reasonable profit margin to cost of manufacture. It notes proposals to fix a uniform statutory profit percentage and requests officers to report on unit details, valuation method used (comparable price or cost-plus), historic cost and profit percentages, sector classification, basis for margins, comparable prices where relevant, estimated sellable profit, and suggestions for industry-specific statutory profit rates for captive-consumed excisable goods.
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