captive consumption

we manufacture electiricy in our own Captive Power Plant using fuel.    A small portion of electricity is given to contractors who are carrying out various jobs inside factory.     inputs used for electiricity generation is duty-exempt , under captive consumption.  But dept view electricity supply to contractors are not captive consumption(used in manufacture of products) and therefore duty is payable on inputs proportionate to electricity supply to contractors.

 

kindly advise how to proceed

Replies (2)
Originally posted by : krishna iyer

we manufacture electiricy in our own Captive Power Plant using fuel.    A small portion of electricity is given to contractors who are carrying out various jobs inside factory.     inputs used for electiricity generation is duty-exempt , under captive consumption.  But dept view electricity supply to contractors are not captive consumption(used in manufacture of products) and therefore duty is payable on inputs proportionate to electricity supply to contractors.

 

kindly advise how to proceed

jobs carried out by contractors are also in relation to production of dutiable finish goods, here u have to treat the  contractor as employee / worker in the factory and then discuss the matter with excise, 

 

but , if the contractor is outside the factory premises and / or doing jobs of others also alongwith yours, then departmental view is right . 

Dear All,

This is Ratan Biswas and my question is that, if I purchase coal in excise invoice and sale in both way no. 1 excise invoice to pass out the duty and no. 2 tax invoice for lacal vat sale. then how to maintain RG23d register and vat register ? PLEASE HELP.

Ratan Biswas

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