01 October 2011
Dear Expert, We are captively use some of our exciseable ( dutiable) products in exempted ( Nil by tarif) final products. Since final product is exempted from excise duty, hence we pay excise duty on the qty used for captive consumption. Similar product is not sell in the market, so comparitive price is not available.We take CA certificate for Cost. Excise duty is paid cost + 10% Notional Profit( valuation rule 8, 2000). Shall we required to apply for Provisional Assessment to the Asst. Commissioner?
04 October 2011
No provisional Assessment is required in this case. But after completion of the financial year, based actual values, the cost of the intermediate product, captively used, has to be recalculated and if any differential value is there, the difference of duty has to be paid. Generally,no differential value will arise. In case, if you fee that you may pay more duty then required through cost construction method, you may request the AC for provisional assessment so that you may file refund application for the excess duty paid.
CAclubindia
