TaxTMI 
TaxTMI 
2025 (6) TMI 437
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....r the production of other final products. In addition, some of these goods were sold to independent buyers in the open market. 3. The appellant paid central excise duty on the said goods cleared by them for captive consumption and the assessable value was determined in terms of the provisions of Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (hereinafter referred to as the "Valuation Rules"). The appellant were filing their Returns periodically. 4. An audit was conducted for the period from 2011-12 to 2012-13 and an objection was raised, as per the decision relied upon in the said objection note, that allegedly, provisions of Rules 4 and 5 of the Valuation Rules, 2000 were applicable where the assessee had sold the goods to both related and unrelated buyers and the valuation done by the appellant in the instant case was allegedly incorrect. It was alleged that the valuation had to be done on the basis of price of goods sold to third parties, which had not been done. On the basis of the above, the Revenue alleged that the appellant had undervalued the goods cleared by them during the period from 2011-12 to 2012-13. 5. In view of the....
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....ly consumed. I am directed to say that on introduction of Central Excise Valuation (Determination of Price of Excisable goods) Rules, 2000, w.e.f. 1-7-2000, it was clarified by the Board vide Circular No. 354/81/2000-TRU, dated 30-6-2000 (para 21) (2000 (119) E.L.T. T22] that for valuing goods which are captively consumed, the general principles of costing would be adopted for applying Rule 8. The Board has interacted with the Institute of Cost & Works Accountants of India (ICWAI) for developing costing standards for costing of captively consumed goods. 2. The Institute of Cost & Works Accountants of India [ICWAI] has since developed the Cost Accounting Standards, CAS 2, 3 and 4, on capacity determination, overheads & cost of production for captive consumption, respectively, which were released by the Chairman CBEC on 23-1-2003. 3. It is, therefore, clarified that cost of production of captively consumed goods will henceforth be done strictly in accordance with CAS-4. Coples of CAS-4 may be obtained from the local Chapter of ICWAI. 4. Board's Circular No. 258/92/96-CX., dated 30-10-96 [1996 (88) E.L.T. T9], may be deemed to be modified accordingly so far as it relates t....
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....ight in their contention that Revenue is bound by the Circular; while assessees are at liberty to contest the circulars. Therefore, in pending matters, the assessee can seek determination of his case under a later beneficial circular by pointing out that instructions contained in the earlier circulars are incorrect and the matter should be settled according to "general principles" developed by an authority competent to lay down standards. Tribunal and Courts are duty bound to consider such a contention. This position enunciated In the judgment of the High Court of Calcutta in the case of Birla Jute and Industries Ltd. v. Assistant Collector 1992 (57) E.L.T. 674 has been approved by the Apex Court in the case of Eswaran & Sons Engineers Ltd. 6. We may also note that the judgment of the Apex Court in the case of Eswaran & Sons Engineers Ltd. does not support the revenue's contention that assessments for each period should be decided in terms of the Circular of the relevant period, without considering the modifications subsequently made in them. The issue considered in the Eswaran & Sons Engineers Ltd. judgment was altogether different. It was as to what was the effect of a subs....
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...., Revenue had no independently sustainable claim. Its claim is based entirely on circulars issued from to time. That too, on incorrect costing principles. It would be wholly Incorrect to apply old circulars without considering the modifications brought about by the latest circular, particularly when, as noted already, it is well settled that assessees are not bound by any circular, though at liberty to seek the benefit of circulars and a Court has to allow such a claim while Revenue is bound by its own circulars. 7. In view of what is stated above, all the appeals are allowed by way of remand with the direction to the original authorities to decide valuation in terms of the Circular No. 692/8/2003, dated 13-2-2003." The said order of this Tribunal was affirmed by the Hon'ble Apex Court in 2016. 9. The Revenue sought to distinguish the decision of their own case for the earlier period on the ground that in the case of Ispat Industries (supra), the Larger Bench of this Tribunal held that the assessable goods transferred to another plant of the same assessee is required to determine the value as per Rule 4 of the Valuation Rules as the goods were sold to the independent buye....