Hello friends...
The case is , a company has several units & one unit is transferring goods to another unit as a raw material.As a result for the company as a whole that intermediate product is been capitiverly consumed.
Now as per Rule 8 the assesable value for that product is 110% of cost of production & that cost of production should be derived as per CAS-4.
Now the query is of which date's cost of production is to be considered, as the company is not been able to derive cost of production before the date of payment of excise duty?
The said company is following this method.
For 1st quarter last year's cost of production
For 2 nd quarter 1st quarter's cost of production.
For 3rd quarter, average of 1st & 2 nd quarter's cost of production.
For 4th quarter, avaerage of three quarter's cost of production...
Whether this is correct?
And whether the company can go for the Provisional assesment under Rule 7?
CAclubindia
