https://www.taxtmi.com/caselaws?id=209103 For captive consumption valuation under Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975, the cost of production must follow accepted costing principles, including CAS-4, so interest on loans is not part of production cost; the demand on that basis was unsustainable. On the alleged loss of raw materials, the department had to prove that the loss related to items required to be added to cost, but produced no evidence; the proposed inclusion therefore could not stand. The valuation adopted by the department failed on both grounds, and the appellate order confirming duty, interest and penalty was set aside. en-us Thu, 17 Feb 2011 00:00:00 +0530 Fri, 09 Sep 2022 14:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=209103 For captive consumption valuation under Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975, the cost of production must follow accepted costing principles, including CAS-4, so interest on loans is not part of production cost; the demand on that basis was unsustainable. On the alleged loss of raw materials, the department had to prove that the loss related to items required to be added to cost, but produced no evidence; the proposed inclusion therefore could not stand. The valuation adopted by the department failed on both grounds, and the appellate order confirming duty, interest and penalty was set aside. Case-Laws Central Excise Thu, 17 Feb 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=209103