1995 (12) TMI 131

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....lates to the valuation of the Sulphuric Acid produced by M/s. Travancore Titanium Products Ltd. (hereinafter referred to as TTP) for their captive use in the production of Titanium Dioxide. The two important raw materials for the production of Titanium Dioxide were Sulphur and Illmenite. The sulphur was used for the production of Sulphuric Acid which was subsequently used in the process of manufacture of Titanium Dioxide. Sulphuric Acid was classifiable under Item No. l4G of the old Central Excise Tariff and was dutiable on the basis of the value. For arriving at the value of Sulphuric Acid, TTP declared their direct costs and indirect costs. For arriving at the indirect costs, the total cost was divided by them by their normal production c....

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....nha, Advocate and Shri Vijay Singh, SDR. In so far as the direct costs are concerned, there is no dispute. In so far as indirect costs are concerned, we find that the Revenue has accepted their total costs as declared. To arrive at the cost per tonne, the Revenue has divided these total costs by the actual production of Sulphuric Acid. The normal production capacity has not been reached by TTP. The indirect costs cannot be related to the notional figures which the manufacturer had not reached. The costs have to be spread on the actual production and we do not find any infirmity in the approach of the Revenue. The margin of profit of 10% as indicated in the show cause notice had already been reduced by the original adjudicating authority as ....