2015 (11) TMI 1580

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....is in 1981, 1982&1983 while the show cause notice is issued on 17/8/87. 4. Learned departmental representative would draw our attention to the findings recorded by the adjudicating authority as also the grounds of appeal taken by the revenue. It is his submission that the adjudicating authority should have added profit margin for arriving at assessable value based upon the provisional balance sheet. It is his further submission that such calculation of assessable value was clarified by CBSC in circular no. 258/92-96-cs 13-10-1996. He would then submit that specifically is this case what is required is allocation of expenses as indicated in show cause notice. 4. Learned counsel appearing on behalf of the respondent draws our attention to t....

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.... said circulars are as under: Year Net sales (Rs in 000) (Sales minus Excise Duty) Profit before Tax (Rs in 000) Cost of production (b.c) % of profit to be added to cost of production (c x 100/d) a b C d E 1981 550.879 54.503 496.375 10.98 1982 557.143 68.365 488.778 13.99 1983 567.694 42.364 525.330 8.06 1984 630.319 30.219 600.100 5.04 On going through the above tabulated data, it is clear that in respect of only one year, i.e., 1982, margin of profit was 13.99% which exceeded 10% already added by the notice to the cost of production on which duty was already paid. 11.5 I now wish to turn my attention to the month-wise cost of production for the year 1982. Since the Annexure to notice dt 17-8-87 was bgereft....