https://www.taxtmi.com/caselaws?id=151577 For captive consumption valuation under Section 4(1)(b) read with Rule 6, the cost of raw material is to be taken in a commercial sense and not as the gross price including excise duty where valid Modvat credit is available. Duty paid on inputs covered by the Modvat scheme is neutralised through the credit mechanism and therefore does not form part of the real cost of production. The Explanation to Section 4(4)(d)(ii) is confined to a different exemption context and does not alter this treatment. The valuation principle thus requires exclusion of such input duty from the assessable cost of the intermediate excisable product. en-us Wed, 11 Aug 1999 00:00:00 +0530 Wed, 18 Jun 2025 12:42:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151577 For captive consumption valuation under Section 4(1)(b) read with Rule 6, the cost of raw material is to be taken in a commercial sense and not as the gross price including excise duty where valid Modvat credit is available. Duty paid on inputs covered by the Modvat scheme is neutralised through the credit mechanism and therefore does not form part of the real cost of production. The Explanation to Section 4(4)(d)(ii) is confined to a different exemption context and does not alter this treatment. The valuation principle thus requires exclusion of such input duty from the assessable cost of the intermediate excisable product. Case-Laws Central Excise Wed, 11 Aug 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151577