Captive consumption

I need help in my 2 question :

01. We are manufacturer of Lub in India, Some of the FG products which are produced in the previous yr or month, are being consumed as captive and another product is being made. We are in SAP so there is no provision of preparing a invoice for captive & paying of a duty.

02. In ER-1 return we calculate captive as

Op. Stock + Production - (Sales+Captive Consump) = Closing Stock

is it the correct procedure.

 

rgds

PK

 

Replies (1)

If the final product that you manufacture from captively consuming the product is excisable then there is no need of paying any duty. Only if the intermedite good which you are manufacturing is excisable and the final product is not excisable you will have to pay duty. 

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