C.C.E. Vs. HARYANA STATE ELECTRICITY BOARD

JUDGEMENT

(1.) THE issue involved in this appeal filed by the Revenue is whether the notional profit 10% is to be added in the assessable value of goods captively consumed when the Respondents M/s Haryana State Electricity Board is incurring loss as per balance sheet.

(2.) SHRI P.K. Jain, Ld. S.D.R. submitted that H.S.E.B. is showing loss in their audited Balance -Sheet in respect of generation and distribution of electricity and not in respect of the goods which are manufactured and captively consumed and accordingly the Notional Profit as per the provision of Rule 6(b)(ii) of the Central Excise (Valuation) Rules has to be added in the assessable value. He also relied upon the decision in the case of Apollo Zipper Company (P) Ltd. v. C.C.E., Calcutta. He finally submitted that if an assessee is having more than one unit, the Profit and Loss of the unit which is making the goods which are captively consumed is only to be taken into consideration.

(3.) SHRI J.P. Kaushik Ld. Advocate, submitted that the matter has been decided by the Appellate Tribunal in the case of P.CC. Pole Pilot v. C.C.E., Chandigarh 1998 (26) RLT 639 in which it was held that the assessable value has to be determined on the basis of the audited Balance Sheet. He also referred to the Order, dated 31.12.93 issued by the C.B.E.C. under Section 37(B) of the Central Excise Act. According to this Order, for the purpose of assessment of goods captively consumed the value should be arrived at by adding the previous year's gross profit, if any, of the assessee as per their audited balance sheet. The Ld. Counsel submitted that the audited balance sheet shows loss as such there is no question of adding any profit to the assessable value.