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

[YAGAY and SUN]

Dear Felix,

1. It would be cost + 10%.
2. if you are consuming say 20% @ Rs. 50 and selling 80% @ say Rs.65, then, assessable value @ Rs.65 will prevail.
3. Even in the scenairo, cost +10% will prevail subject to reply no. 2.

Best Regards,

Pradeep Khatri

AI Summary

Valuation of captively consumed goods: transaction value of sold units can govern assessable value; cost-plus applies otherwise.
Valuation of captively consumed goods uses a cost plus 10% adjustment to cost of production as the standard measure; however, where goods are partially sold, the transaction value of the sold portion governs and, if higher, prevails as the assessable value for the consignment, with the cost-plus valuation remaining the fallback for captive use.