Trading of exciseable goods / captive consumption

Govindarajan (Manager) (109 Points)

08 October 2012  

Dear Experts,

Please clarify on the following scenario:

1. We use to purchase exciseable finished goods (textile) by paying the excise duty charged by the supplier and take input credit of the same.  

Whether the finished goods thus purchased should suffer excise duty again when it is sold by us in whole sale to our buyer?

2. We use to supply raw materials and accessories to our job workers for manufacturing finished goods (exciseable). Some of the materials delivered to the jobworkers were procured by paying excise duty for which we have taken input credit.  

Whether the raw material and accessories thus supplied (duty paid at the time of purchase) is coming under the purview of captive consumption and whether duty liability for captive consumption would arise?

3. Please furnish the circumstances where captive consumption arise

Regards,

Govindarajan R