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Valuation of Goods Captively Consumed
Central
Excise Circular No. 692 dated 13th February 2003
I
am directed to say that on introduction of Central Excise Valuation
(Determination of Price of Excisable goods) Rules, 2000 w.e.f. 1.7.2000, it was
clarified by the Board vide Circular No. 354/ 81/ 2000-TRU dated 30.6.2000 (para
21) that for valuing goods which are captively consumed, the general principles
of costing would be adopted for applying Rule 8. The Board has interacted with
the Institute of Cost & Works Accountants of India (ICWAI) for developing
costing standards for costing of captively consumed goods.
(2) The Institute of Cost & Works Accountants of
India [ICWAI] has since developed the Cost Accounting Standards, CAS 2, 3 and 4,
on capacity determination, overheads & cost of production for captive
consumption, respectively, which were released by the Chairman, CBEC on
23.1.2003.
(3) It is, therefore, clarified that cost of production
of captively consumed goods will henceforth be done strictly in accordance with
CAS-4. Copies of CAS-4 may be obtained from the local Chapter of ICWAI.
(4) Board�s Circular No. 258/ 92/ 96-CX dated
30.10.96, may be deemed to be modified accordingly so far as it relates to
determination of cost of production for captively consumed goods.
(5)
This Circular may be brought to the notice of the field formations.
(6)
Suitable Trade Notices may be issued for the benefit of the Trade.
(7)
Hindi version will follow.
(8)
Receipt of these instructions may be acknowledged.
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