https://www.taxtmi.com/caselaws?id=214480 For valuation of goods captively consumed under Rule 8 of the Central Excise Valuation Rules, 2000, the cost of production must be determined on the basis of actual production cost. The amounts recovered through debit notes and invoices described as conversion charges could not be equated with the cost of production where the documents showed that the sums may also include a profit element. As the records did not establish that the recoveries represented only conversion cost, they could not be adopted for valuing clearances to the sister units. The demand based on that valuation was therefore unsustainable. en-us Thu, 26 Apr 2012 00:00:00 +0530 Wed, 10 Oct 2012 15:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=214480 For valuation of goods captively consumed under Rule 8 of the Central Excise Valuation Rules, 2000, the cost of production must be determined on the basis of actual production cost. The amounts recovered through debit notes and invoices described as conversion charges could not be equated with the cost of production where the documents showed that the sums may also include a profit element. As the records did not establish that the recoveries represented only conversion cost, they could not be adopted for valuing clearances to the sister units. The demand based on that valuation was therefore unsustainable. Case-Laws Central Excise Thu, 26 Apr 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=214480