Adopting cost inflation index of Income Tax for Excise valuation not valid

Shri Krsna Urja Project Pvt Ltd. Vs CCE (CESTAT Delhi)

CESTAT Delhi held that there was no legal basis for adopting cost inflation index of Income Tax dept for determination of assessable value under Section 4 of CE Act read with the CE Valuation Rules, 2000, for valuation of captively consumed goods. The Tribunal also noted that cost of manufacture as certified by Cost Accountant in CAS-4 cannot be rejected based on vague reasons and that Commissioner (Appeals) should have provided tenable grounds for rejecting assessable value.

Please become a Premium member. If you are already a Premium member, login here to access the full content.