2006 (2) TMI 516

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.....C. Verma, DR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. - The appellant manufactures envelopes from paper produced by it. The envelopes are not liable to duty; but the paper consumed in their production is. And the appellant discharged the duty. As the duty was based on value, the appellant indicated the same in a declaration filed on 1-4-2004, and duty was paid on the decl....

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....price of identical paper was very close to the value worked out on cost of production basis. It is also contended that inclusion of the overall profit of the company for the valuation of a captively consumed item is not permissible. According to the assessee what is relevant is the profit normally earned on the sale of "such goods" (paper in the present case) and not overall profit of the company.....

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.... 4807.10 Rs. 4.50/-     Yellow 4807.10 Rs. 5.15/- Used Captively   Ledger 4807.10 Rs. 5.50/-               REINFORCED PAPER (SHEET)     Brown 4807.10 Rs. 4.60/-     Yellow 4807.10 Rs. 5.25/-     Ledger 4807.10 Rs. 5.60/-   &nbs....

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.... retail price as the goods to be valued (c) about assessable value of which there is no dispute. 3.       Declaration in the format shall be filed as and when there is change in value. It is to be seen from the above declaration of the appellant that the appellant had furnished both costs of production as well as sale price. It was for the Revenue to choose the ....