https://www.taxtmi.com/article/detailed?id=6640 Under the CAS IV format, overheads must be split into variable and fixed items; variable production overheads, including utilities, are to be absorbed on actual capacity utilization, while fixed production overheads are absorbed on normal capacity or actual capacity whichever is higher. The appellant allocated utilities on normal capacity, but para 5.9 treats utilities as variable overheads, so prima facie the appellant's approach is inconsistent with CAS guidance and supports the department's challenge to the costing for captive consumption. en-us Wed, 20 Jan 2016 07:59:43 +0530 Wed, 20 Jan 2016 07:59:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=6640 Under the CAS IV format, overheads must be split into variable and fixed items; variable production overheads, including utilities, are to be absorbed on actual capacity utilization, while fixed production overheads are absorbed on normal capacity or actual capacity whichever is higher. The appellant allocated utilities on normal capacity, but para 5.9 treats utilities as variable overheads, so prima facie the appellant's approach is inconsistent with CAS guidance and supports the department's challenge to the costing for captive consumption. Articles Central Excise Wed, 20 Jan 2016 07:59:43 +0530 https://www.taxtmi.com/article/detailed?id=6640