Per Justice U.L. Bhat :

Appellant is absent in spite of notice of hearing but has sent a request for decision of the appeal on merits. We have heard Shri M.Ali, JDR and perused the papers.

2. Appellant manufacturers printing ink and captively consumes the same in the manufacture of calenders and labels. Price List No. 4/87-88 was filed in regard to printing ink in Part IV(a) under Rule 6(b)(ii) of the Central Excise Valuation Rules, 1975 showing cost of raw materials, charges and 5% as margin of profit. The Balance Sheet showed the profit in regard to the end-product as 30.89%. Notice was issued to appellant to show cause why 30.89% should not be taken as notional profit in regard to printing ink. Notice was resisted by the appellant but was confirmed by the Assistant Collector. His order was confirmed by the Collector (Appeals). Hence the present appeal.

3. According to Rule 6(b)(ii) of the Valuation Rules, valuation should be based on the cost of production or manufacture including profits, if any, which the assessee would have normally earned on the sale of such goods. There is no dispute in this case that notional profit has to be added; the dispute relates only to the quantu