2015 (12) TMI 802

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....ura Dariba Mines where the zinc ore is mined and ore concentrate is manufactured. During the period of dispute, i.e., during 1999 to 2000, the ore concentrate attracted Central Excise Duty. The respondent were clearing the ore concentrate to their various smelting unit on payment of duty on the value determined under Rule 6 (b) (ii) of the Central Excise Valuation Rules, 1975, i.e., on the cost of production plus the profit which the assessee would have normally earned on sale of the goods captively consumed. In this regard, the respondent had added a notional profit of 10 per cent, even though, during the period of dispute, the ore concentrate unit was incurring loss. The cost of production adopted was the cost of production for the previo....

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....al dated 25/8/2003 while dismissing the department's appeal for enhancing the profit margin to 15.24 per cent, remanded the matter to Original Adjudicated Authority in respect of the appeal filed by the respondent. The Revenue is in appeal against the CCE (appeals)'s order dismissing the Department's appeal. 2. Heard both the sides in respect of the Revenue's appeal. 3. Shri Pramod Kumar, ld. JCDR, assailed the impugned order of the Commissioner (appeals) in respect of the profit margin to be adopted and pleaded that in terms of the provisions of Rule 6 (b) (ii) of the Central Excise Valuation Rules, 1975, the value of the goods cleared for captive consumption is to be determined on the basis of cost of production plus profit, if any,....

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....as been correctly relied upon by the Commissioner (appeals); that in this judgment the Larger Bench of the Tribunal has held that the profit or loss made by the manufacturer from other activities, be it the manufacture of other goods or trading in other goods is of no relevance while determining the assessable value of the goods cleared for captive consumption under Rule 6 (b) (ii) and for this purpose only the profit margin which the assesse would have earned on the sale of the goods cleared for captive consumption which is to be considered and not the overall profit of the company; that in the respondent company's own case in respect of other mine, where the identical issue regarding valuation of the ore concentrate cleared for captive co....