Valuation for captive consumption duty payment

[shamanthaka mani]

Rule 8 of Central Exicse Valuation Rules 2000 has been amended vide Notificaiton No. 6/2003 CE (NT) dt.5.8.2003, wherein the words 'one hundred and fifteen percent' has been substituted by the words 'one hundred and ten percent'.   What could be the reason behind this amendment by substitution.  Will it be retrospective, atleast upto 1.4.2003.

AI Summary

Amendment to Rule 8: Valuation for captive consumption duty changed from 115% to 110%, not applied retrospectively. A query was raised regarding an amendment to Rule 8 of the Central Excise Valuation Rules 2000, which changed the valuation percentage for captive consumption duty payment from 115% to 110% as per Notification No. 6/2003 CE (NT) dated 5.8.2003. The inquiry sought the rationale behind this change and whether it applied retrospectively from 1.4.2003. The response clarified that the amendment reflects a standard profit margin of 10% and is not applied retrospectively.