2011 (7) TMI 424

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....the ground that the assessable value of the yarn stand correctly adopted by them, inasmuch as the appellant s factory was incurring losses, no notional profit is required to be added to enhance the assessable value. On appeal against above order filed by the Revenue, the Commissioner(Appeals) took into consideration the profit earned by the company in respect of their all units and added notional profit to the extent of 10% and accordingly confirmed the demand of duty of Rs.77,72,869/- (Rupees Seventy Seven Lakhs, Seventy Two Thousands, Eight Hundreds and Sixty Nine Only). The said order of Commissioner(Appeals) is impugned before us. Ld.Advocate appearing for the appellants submit that it is now well settled law that the profit and losses ....

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.... be to the extent of 10%. For better appreciation, we reproduce Para 3 of the said judgment.   3. We note that the lower appellate authority has relied upon the Larger Bench decision of this Tribunal in the case of Raymonds Ltd. v. Commissioner of Central Excise, Aurangabad, 2001 (129) E.L.T. 327 (T-LB) and Crompton Greaves Ltd. v. Commissioner of Central Excise, Chandigarh, 2002 (139) E.L.T. 101 (T), to hold that profit earned by the chemical division cannot be included in determination of the cost of the captively consumed yarn and that the textile division had incurred loss and not made any profit, and that the value was determined correctly by the assessee for payment of duty on captively consumed salary and there is no question....