- (1.) REVENUE is in appeal against Final Orders Nos. 554 and 555 of 2005 dated 30-3-2005 passed by the Customs, Excise and Service Tax Appellate Tribunal, South Zonal Bench at Chennai (for short "the Tribunal") in Appeals Nos. E/358 of 1999 and E/149 of 2001.
(2.) BEFORE the Tribunal three points were argued, namely, (i) classification; (ii) applicability of the principles laid down in CAS-4 while determining the value of captively consumed goods; and (iii) percentage of profit that should be added while computing the value under Rule 6(b)(ii) of the Central Excise (Valuation) Rules, 1975 (for short "the Rules"). The third point was sub-divided into two parts viz. (a) as to whether the department would add over all profits earned by the group Company when it comes to determining the profit earned by the unit in question; and/or (b) the profit relating to the product in question, could be added as notional profit. On the question of classification, Tribunal decided against the assessee and the said decision has not been challenged by the assessee and, has therefore, attained finality. The finding recorded by the Tribunal regarding classification is no longer in issue.
(3.) INSOFAR as the applicability of principles laid down in CAS-4 is concerned, the senior departmental representative appearing before the Tribunal had conceded that the principles laid down in CAS-4 while determining the value of the captively consumed goods arc applicable and accordingly prayed that the matter be remitted back to the original authority with a direction that costing principle laid down in CAS-4 should be applied while arriving at the value of the captively consumed goods. The Tribunal on the concession made, remitted the matter to the original authority to determine the value in accordance with CAS-4 keeping in view the law laid down in the judgment rendered by the Bangalore Bench of the Tribunal in assessee's own case i.e. ITC Ltd. v. CCE1.;