Captive consumption of final product

CA Final 529 views 2 replies

Dear All,

Please be informed that we have manufactured the machine and now we have decided to use in our factory production itself or either we can use it for a demonstration to our clients.

This machine is the final product which we have manufactured and no other manufaturing activties will be done nowonwards.

Please let me know what will be the excise procedure for it. Whether we can have the invoice for it as per Valuation Rules 8 (110% value additioin) and pay the exact duty.

Please assist.

Regards

Chetan

Excise Executive

 

Replies (2)

No need to registered with central excise and pay duty upto the 1.5cr turnover of manufacturing of dutiable goods. 

Yes, you will have to discharge duty at the rate specified as per tariff by adopting value of Cost + 10% . Please raise an excise invoice as per Rule 11 of CER 2002.,


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