1997 (1) TMI 170

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....s. Price List No. 4/87-88 was filed in regard to printing ink in Part IV(a) under Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975 showing cost of raw materials, charges and 5% as margin of profit. The Balance Sheet showed the profit in regard to the end-product as 30.89%. Notice was issued to appellant to show cause why 30.89% should not be taken as notional profit in regard to printing ink. Notice was resisted by the appellant but was confirmed by the Assistant Collector. His order was confirmed by the Collector (Appeals). Hence the present appeal. 3. According to Rule 6(b)(ii) of the Valuation Rules, valuation should be based on the cost of production or manufacture including profits, if any, which the assessee would hav....

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....vely consumed in the manufacture of graphite electrodes, 50% of the profit linked with the finished product as shown in the balance sheet was added and the Tribunal holding that what was done was reasonable declined to interfere. In Kanoria Chemical Industries v. Collector of Central Excise, Allahabad - 1995 (80) E.L.T. 795 the party declared notional profit margin as 5% which was increased by the Assistant Collector to 10% in the absence of specific data. Collector (Appeals) held this to be arbitrary and directed the Assistant Collector to add 6.97% as margin of profit since this percentage of profit had been earned on bleaching powder. Tribunal observed that since the intermediate products were not sold as such profit earned with referenc....

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....propriate situations. In West Coast Paper Mills Ltd. v. Collector of Central Excise, Belgaum - 1996 (81) E.L.T. 403 (Tribunal) question arose with reference to valuation of wrapper paper used in the packing of other varieties of paper. This aspect was not considered. What was considered was what should be done where an assessee was normally making profit but in a particular year incurs loss. Assistant Collector had gone by the profit shown in the Balance Sheet. Tribunal declined to interfere. 5. In Appeal E/4294/89-A decided on 23-12-1996, referring to the decisions in Dhrangadhra Chemical Works Ltd. - 1988 (35) E.L.T. 202, Bimetal Bearing Ltd. - 1996 (81) E.L.T. 246, Kanoria Chemicals - 1995 (80) E.L.T. 795 and West Coast Paper Mil....