2008 (1) TMI 134

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.... is appeal against the order of the Commissioner No. 16 to 32/2004, dt. 21-10-04. 2. Heard both sides. 3. The relevant facts, in brief, are as follows: The appellant is manufacturing different goods falling under Chapter 15, 25, 28, 29, 68, 73 & 84 of CETA, 1985. The machines, machinery parts, articles of cement, articles of iron falling under Chapter 84, 68 & 73, which are manufactured b....

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..... 86,74,518. 4.1 The learned advocate appearing for the appellant submits that during the relevant period, in respect of the captively used capital goods, values are determined under Rule 6(b)(ii) of the Central Excise Valuation Rules 1975, inasmuch as the capital goods in question are not at all sold but entirely used captively, and the value was adopted by them as cost of production + notiona....

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....ofit of the company proposed to be added by the assessing authority. 4.2 In addition, the learned Advocate relies on the following judgments: (1) Kamarajar Electricity System v. CCE, Madras - 1997 (92) E.L.T. 100 (Tribunal) (2) Collr. of CE, Coimbatore v. Festo Elgi (P) Ltd. - 1998 (98) E.L.T. 617(Tribunal) (3) Goetze (India) Ltd. v. CCE, Bangalore - 2006 (193) E.L.T. 578 (Tri-Bang.) ....

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....on. The Tribunal's judgments in the case of the same appellant company cited supra, make it clear that for valuation of the intermediate goods captively used, the profit margin of final product cannot be adopted as such. Even if the same is adopted, as a base, adjustment will have to be made to arrive at the notional profit margin. Tribunal has also held that 10% shall be a reasonable profit margi....