valuation of goods captively consumed

[Dalia Felix]

hai all,

i request your suggestions on:

1. as per rule 8 (valuation rules) what is the % to be added to cost of production (10 or 15)
2. when goods are partially sold and partially consumed, how valuation for Excise duty purposes be done-is it as per circular 643/34/2002-CX dated 1-7-2002 or as decided by    Ispat Industries Ltd., Vs. CCE, Raigad ? As per the circular, goods sold @transaction value and consumed goods as per Rule 8. As per the case law all at transaction value. which is to be followed now? the latest guidance notes issued by ICWAI recommends to follow the circular. Any latest case/clarification noted by you?
3. whether captive consumption exemption is available to removals to various units under the same manufacturer, even when the units are not within the same premises

AI Summary

Clarification on excise duty: Valuation should be cost plus 10%, captive consumption rule applies across different units. A participant inquired about the valuation of goods for excise duty when items are partially sold and partially consumed. They questioned whether to follow a specific circular or a case law, noting the ICWAI's recommendation to adhere to the circular. Additionally, they asked about captive consumption exemptions for goods removed to different units of the same manufacturer. The response clarified that the valuation should be cost plus 10%, and for goods consumed and sold, the assessable value should be based on the selling price. The captive consumption rule applies even if units are not on the same premises.