https://www.taxtmi.com/caselaws?id=84756 Modvat credit on duty-paid inputs is excluded from the assessable value of captively consumed intermediate goods under the cost-based valuation scheme in Section 4(1)(b) and Rule 6(b)(ii), because the credit mechanism reimburses that duty and prevents cascading taxation. The input duty is therefore not part of the real cost of production, unless the declared input cost has already omitted that duty element. The note also states that Atic Industries and Incab Industries are not in conflict, as both proceed on the same valuation principle under Section 4(1)(a) and recognise only an indirect effect of Modvat credit on price where the rules permit it. en-us Thu, 11 Jan 1996 00:00:00 +0530 Mon, 25 Jul 2011 14:52:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=84756 Modvat credit on duty-paid inputs is excluded from the assessable value of captively consumed intermediate goods under the cost-based valuation scheme in Section 4(1)(b) and Rule 6(b)(ii), because the credit mechanism reimburses that duty and prevents cascading taxation. The input duty is therefore not part of the real cost of production, unless the declared input cost has already omitted that duty element. The note also states that Atic Industries and Incab Industries are not in conflict, as both proceed on the same valuation principle under Section 4(1)(a) and recognise only an indirect effect of Modvat credit on price where the rules permit it. Case-Laws Central Excise Thu, 11 Jan 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=84756