https://www.taxtmi.com/caselaws?id=435411 For captive inter-unit transfers, valuation must be based on the actual cost of production of the goods transferred, and not on notional loading elements such as the Rule 8 percentage applied at the supplying unit. Debit notes raised by the paper unit were not treated as part of the recipient unit's raw material cost, and unabsorbed overheads arising from idle machine capacity were also not added to cost of production or closing stock. The valuation additions in the impugned order were therefore held unsustainable, with consequential relief following. en-us Thu, 16 Mar 2023 00:00:00 +0530 Sat, 18 Mar 2023 18:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=435411 For captive inter-unit transfers, valuation must be based on the actual cost of production of the goods transferred, and not on notional loading elements such as the Rule 8 percentage applied at the supplying unit. Debit notes raised by the paper unit were not treated as part of the recipient unit's raw material cost, and unabsorbed overheads arising from idle machine capacity were also not added to cost of production or closing stock. The valuation additions in the impugned order were therefore held unsustainable, with consequential relief following. Case-Laws Central Excise Thu, 16 Mar 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=435411