Transfer of goods from one unit to another is valued at actual cost of production excluding notional loading

ITC Limited Vs Commissioner of GST & Central Excise (CESTAT Chennai) CESTAT Chennai held that in case of Inter-unit transfer of goods for captive consumption, the actual cost of production (100% of the cost of production), of the raw material procured from the Bhadrachalam unit of the appellant [excluding the notional loading under Rule 8 – 15% / 10%] is the cost of raw material in the hands of the Chennai unit Facts- The point for consideration before the Commissioner is whether or not the value of paper received from Bhadrachalam Unit is 115%/ 110% of cost of production or just 100% in...