https://www.taxtmi.com/caselaws?id=126021 Captively consumed intermediate goods are to be valued on the basis of cost of production computed under accepted cost-accounting principles. Only costs that actually enter manufacture, such as direct material, direct labour, direct manufacturing costs and factory overheads, form part of production cost. Expenses incurred after manufacture, including advertising, marketing, insurance and other selling or distribution expenses, are excluded from that computation. The 2003 Board circular required valuation in accordance with CAS-4, and those standards did not support inclusion of the disputed post-manufacturing expenses. Marketing and distribution expenses were therefore not includible in the cost of production of captively consumed goods. en-us Wed, 18 Feb 2009 00:00:00 +0530 Mon, 09 Apr 2018 18:32:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=126021 Captively consumed intermediate goods are to be valued on the basis of cost of production computed under accepted cost-accounting principles. Only costs that actually enter manufacture, such as direct material, direct labour, direct manufacturing costs and factory overheads, form part of production cost. Expenses incurred after manufacture, including advertising, marketing, insurance and other selling or distribution expenses, are excluded from that computation. The 2003 Board circular required valuation in accordance with CAS-4, and those standards did not support inclusion of the disputed post-manufacturing expenses. Marketing and distribution expenses were therefore not includible in the cost of production of captively consumed goods. Case-Laws Central Excise Wed, 18 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=126021