TaxTMI 
TaxTMI 
Interest expenditure, depreciation and profit margin not be taken into consideration for arriving at the cost of production
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....nterest expenditure, depreciation and profit margin not be taken into consideration for arriving at the cost of production<br>By: - Bimal jain<br>Central Excise<br>Dated:- 1-12-2015<br><br>C.C.E., Vad....
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....odara-I Vs. Nirma Ltd. & Ors. [2015 (11) TMI 605 - SUPREME COURT] Nirma Ltd. & Ors. ("the Respondent") was engaged in the manufacture of Linear Alkyl Benzene ("LAB") which was cleared by the Responde....
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....nt to its sister units located in different places and was also used captively in the same factory where the said LAB is manufactured. The Respondent was paying Excise duty as per Rule 8 of the Excise....
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.... Valuation Rules. The Department has demanded the differential duty by alleging that costing as done by the Respondent was not in accordance with the method of costing and it resulted in undervaluatio....
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....n and thus, paid lesser amount of duty. The Department sought to include following three elements of cost for arriving at the cost of production: * Interest expenditure; * Depreciation; and ....
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.... * Profit margin The Hon'ble Supreme Court has held that in accordance with the Costing Accounting Standard - 4 (CAS-4), interest expenditure, depreciation and profit margin not be taken into consi....
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....deration for arriving at the cost of production for the payment of Excise duty.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....