Differance between capital goods and captive consumption

Dear Swetha

I think you are littile confused. Please refer to below clarification:

Captive Consumption: A manufactured product on which excise duty is liable to pay but used by the same manufacturer in support of another product on which excise duty is payable and used by the same manufactuer in support of manfacture are called captive consumption. Please refer to notification no.67/95-CE.

Second a product which have not arrived it sales value and used by your another company, in that case assessable value will be as per CAS-4. (Cost of Production+10%.)

Hope the doubts are clear now.

Regards

HS Negi

But sir please let me confirmed by one thing....

Is CAS-4 is an explaination to transfer pricing........like.....10% on account of deemed profit or something like that........

Yes, It is . In case inputs or capital goods transfered such you have to reverse the cenvat credit in proportionate of reversed qty.

Regards

HS Negi