2010 (8) TMI 269

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....xtent it dismisses the appeal filed by the department against the order passed by the adjudicating authority on 25-7-2000 whereby the assessment of lead and zinc concentrate classifiable under chapter heading 26.07 and 26.08 respectively cleared from the factory during the period from 1-4-99 to 31-3-2000 to their various smelters was sought to be finalized by adding notional profit @ 10% in the relevant year's cost of concentrate as there was no profit during the year 1999-2000 and accordingly the order of assessment of the lead and zinc concentrate was cleared for the said period by taking into account clearance on the grounds of Dry MT. The challenge to the impugned order is on the ground that what was required to be considered for determ....

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....ed to be included. Since the goods were being captively consumed, they filed a Price List effective from 11-3-1998 in respect of the fabrics manufactured at Jalgaon unit. The value of the goods was determined based on the cost of production method and addition of 3.34% was also made towards profit. Show cause notice dated 1-1-1999 was issued proposing to increase the element towards profit from the original 3.34% to 30.6%, which was found to be the gross profit for the textile division for 1998-99. the adjudicating authority held that instead of the profit of 3.34% originally added, an addition of 10% towards normal profit should be made. The Hon'ble Tribunal observed that the appellants declaration of price was based on the cost of product....