1995 (8) TMI 137

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....nsumed) for purposes of assessment to Central Excise duty. In this case. as there are no comparable goods, approval of price at Rs. 4000/- per M.T. was sought for under Rule (b)(ii) of Valuation Rules, 1975 in respect of price list No. 12/80 effective from 1-7-1980, without including the margin of profit. As the above rate was tentatively claimed by appellants, the Assistant Collector issued a show cause notice dated 16-2-1981 as to why the price List No. 12/80 should not be approved provisionally based on the actual cost of production of the previous year including the margin of profit of the same year under the said Valuation Rule. Since particulars of balance sheet for the year 1980-81 (1-7-1980 to 30-6-1981 - their accounting year) were....

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....e tax and the Rule does not specifically stipulated that net profit alone, if any, should be included, appellants' arguments in this regard are intenable. Hence, the total profit (i.e.) gross profit before tax as exhibited in the Balance-sheet of a particular year has been taken into account to arrive at the price for the purpose of valuation under the Central Excise law; and the same rate of gross profit has been taken in respect of goods captively consumed; in view of the deeming provisions under Rule 6(b)(ii) of Valuation Rules, 1975. While deciding this case, the particulars of Balance-sheet for 1980-81 (1-7-1980 to 30-6-1981) and cost of production of wrapper paper per M.T. for the same year were made available to lower authority and a....

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.... are captively consumed by him and when value of comparable goods is not available, the value of goods captively consumed should be determined on the basis of cost of production or manufacture, "including profits, if any, which the assessee would have normally earned on the sale of such goods." If an assessee has normally been making profit but in one particular year incurs loss due to some reasons, it cannot be inferred therefrom that the assessee would have normally sold his goods without profit or at loss. Normally speaking, no businessman would like to sell his goods without adding a reasonable margin of profit. The Tribunal held in Appollo Zipper Co. v. Collector of Central Excise -1987 (29) E.L.T. 126 that it is this normal margin of ....