https://www.taxtmi.com/caselaws?id=84756 Under the cost-based valuation scheme in Section 4(1)(b) and Rule 6(b)(ii), duty paid on inputs for which Modvat credit is availed does not form part of the real input cost when determining the assessable value of captively consumed intermediate goods, provided the declared input cost has not already excluded that duty. Modvat credit operates as reimbursement of input duty and prevents cascading taxation. Earlier decisions concerning normal-price valuation under Section 4(1)(a) were consistent: Modvat credit does not automatically alter the normal wholesale price, although a valid price reduction may indirectly affect valuation. The appeal succeeded, the prior orders were set aside, and fresh determination was required on this basis. 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 Under the cost-based valuation scheme in Section 4(1)(b) and Rule 6(b)(ii), duty paid on inputs for which Modvat credit is availed does not form part of the real input cost when determining the assessable value of captively consumed intermediate goods, provided the declared input cost has not already excluded that duty. Modvat credit operates as reimbursement of input duty and prevents cascading taxation. Earlier decisions concerning normal-price valuation under Section 4(1)(a) were consistent: Modvat credit does not automatically alter the normal wholesale price, although a valid price reduction may indirectly affect valuation. The appeal succeeded, the prior orders were set aside, and fresh determination was required on this basis. Case-Laws Central Excise Thu, 11 Jan 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=84756