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Central Excise

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Manoj

salaried

21 Points Posted on 28 March 2010

Can the goods taken as captive consumption for future/next day production be sold/cleared on payment of duty on it?

e.g.- An assesee is having two unit of production. Finished product of one unit is the raw material of another. Here, if the assesee has taken their FG of that unit as captive consumption for the other unit and transfer their FG into raw material A/c and in the subsequent month the captive consumption goods are not fully consumed for production. Can the assesee sell that Captive consumption goods?

Replies (1)

Himanshu

Chief Accountant

105 Points Posted on 13 April 2010

Hello Manojji,

You are Assessee & you have two unit s for production, your material manufactured in unit no. "B" & this material is come back in Unit no. "A" [Here Unit No."A" is you as a Assessee]. Kgs. 1000.000 recd. from "B" to "A" on Dt. 28th March 2010 - Kgs. 850 is used in your captive consumption & Kgs.150 is remaining.

Here on 29th march you Show the production of Kgs. 150 in Daily stock register (Old RG-1) & you can definatelly sales Kgs. 150.000 in market to make an Excise invoice under Rule 11 of C.Ex. Rules 2004. & Pay the duty on applicable Selling rate which you have charted in your invoice.

if any other doubts pl. contact me on hemujmehta @ yahoo.co.in

hv a nice day.. by tc.