AI Drafter 
TaxTMI 
TaxTMI 
2025 (11) TMI 1335
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.... - 711 202 [hereinafter referred to as the "respondent"] having Central Excise Registration No. AAACH1201RXM010 for the manufacture and clearance of Rolled products of Aluminium viz. corrugated and plain sheet of various thickness, both alloy and non-alloy, falling under Tariff Code No. 7606 of the first schedule to the Central Excise Tariff Act, 1985 allegedly contravened Rules 4, 6, 7(1) & (2) and 8 of the Central Excise Rules, 2002 read with Rules 8 and 9 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 in as much as the said company short paid Central Excise duty during the impugned period (Financial Years 2009-10 to 2014-15) by means of undervaluation of assessable value of the said goods supplied to their sister units by wrongful application of CAS-4 method to arrive at the value of the finished product and had allegedly wilfully suppressed the above mentioned fact of undervaluation and wrongful application of CAS-4 method with intention to evade Central Excise duty mentioned above. Shri Amitava Ghosh, in his official capacity as the Deputy Manager - Accounts of the respondent-company was held responsible for all the activities related t....
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....as per Annual Closing Schedule (ACS) for the year 2009-2010 and thereby they undervalued the finished products dispatched to their sister units and made short payment of duty. It was found that Annual Closing Schedule (2009-2010) was prepared by the appellant and it was also a part of their audited accounts. Hence there is justification for consideration of cost of raw materials as per Annual Closing Schedule and it was more appropriate to adopt the said cost of raw materials as per Annual Closing Schedule than the one worked out on the basis of data for a short period of time. (2) As per Rule 7(1) of the Central Excise Act, 1944 where the assessee is unable to determine the value of excisable goods or determine the rate of duty applicable thereto, he may request the AC/DC in writing, giving reasons for payment of duty on provisional basis and the AC/DC may order allowing payment of duty on provisional basis at such rate or on such value as may be specified by him. The appellate authority has not considered that this provision of law was not at all abided by the appellant though the same should have been the proper procedure in the instant case. (3) That the appel....
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.... test of being a reasoned order to that extent only. (7) That the Commissioner (Appeals), while dropping the proceedings initiated against the respondent. did not properly and adequately analyze the facts and circumstances of the instant case, and in turn has failed to appreciate the event of contravention of existing laws of Central Excise and involvement by the said respondent. 4.1. Accordingly, he prays for setting aside the impugned order and restoration of the Order-inOriginal passed by the lower authority. 5. On the other hand, the Ld. Advocates appearing on behalf of the respondent submitted at the outset that the issue involved herein is no longer res integra and the same stands settled by this Tribunal in the respondent's own case, vide Final Order No. 76601 of 2023 dated 30.08.2023. Accordingly, stating that the factual matrix of the instant case being identical to those in the case cited supra, they prayed that the Revenue's appeal merits rejection in view of the decision rendered by the Tribunal therein. 5.1. Without prejudice to the above, the respondent has also tendered a written submission dated 17.11.2025 making various submissions on merits as we....
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....ould not be adopted as cost of raw material for the purpose of CAS-4 certificate to be correct inasmuch as such price is only a notional value for internal accounting purposes and such notional value is neither recorded nor its impact is captured in the financial statements of the respondent. 9. Further, as has been rightly pointed out by the counsel representing the respondents, we find the instant issue before us to be no longer res integra. This Tribunal, in the respondent's own case in Hindalco Industries Ltd. v. Commissioner of C.Ex. & Cus., Kolkata [Final Order No. 76601 of 2023 dated 30.08.2023 in Excise Appeal No. 116 of 2012 - CESTAT, Kolkata] has already examined an identical issue, observing as follows: - "9. We observe that the issue involved in the present appeal is valuation of goods cleared by the Appellant to their own units located at various places. For the determination of assessable value under the Central Excise Act, 1944, the Appellant arrived at the cost of production based on the CAS-4 certificate received from the Cost Accountant. However, at the time of supply of final products to their other factories, the CAS-4 certificate for the current yea....
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....ofit on inter-plant transfers for the purpose of evaluating the operational efficiencies/ profitability of their various units/divisions. However, the Tribunal held that "the value of IDSC/ICNC debit note is notional in nature and cannot be considered as cost of raw material for the purpose of determining value under Rule 8 of Valuation Rules for captive consumption". It was held that only actual costs are includible to arrive at the CAS-4 value under Rule 8. 13. We find that Circular No. 692/8/2003-Cx dated 13.02.2003 issued by the Department of Revenue has clarified that the cost of production of captively consumed goods should be done strictly in accordance with CAS-4. The Circular makes it very clear that the CAS-4 certificate issued by Cost Accountant is the sole method for calculating the cost of production for captively consumed products. Therefore, we hold that the differential valuation method adopted by the Department is against this Circular which mandates that the valuation in such cases must be on the basis of the CAS-4 certificate issued by the Cost Accountant only. It is a well settled position of law that Circulars issued by Revenue are binding on the Depar....