https://www.taxtmi.com/caselaws?id=46694 For captive consumption valuation under Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975, "cost of production" must reflect the actual production cost of the goods, while any notional element applies only to profits ordinarily earned on sale. Recycled waste used again in manufacture does not convert the cost component into a notional figure where the original input cost has already been incurred and duty has been paid on the waste. The correct approach is to value the goods on actual cost of production with notional profits only; valuation based on a notional cost of granules is not sustainable. en-us Thu, 25 Sep 2003 00:00:00 +0530 Fri, 20 Jun 2014 21:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=46694 For captive consumption valuation under Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975, "cost of production" must reflect the actual production cost of the goods, while any notional element applies only to profits ordinarily earned on sale. Recycled waste used again in manufacture does not convert the cost component into a notional figure where the original input cost has already been incurred and duty has been paid on the waste. The correct approach is to value the goods on actual cost of production with notional profits only; valuation based on a notional cost of granules is not sustainable. Case-Laws Central Excise Thu, 25 Sep 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=46694