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Excise captive consumption
X Ltd having 2 plant chennai and delhi, in chennai plant they are manufacturing 4 units A,B,C,& D, in delhi plants manufacturing same units A,B,C&D.stock transfer of unit A from chennai plant to delhi plant for manufacturing same unit A. Whether the above stock transfer is captive consumption ?
Replies (4)
No because capitive consumption means using of goods of earlier unit for producing another unit that is b so in this case captive consumtion not apply. Unit a issue supplementary invoice
This stock transfer will be treated as sale for Chennai plant and Chennai plant will have to pay excise duty against this invoice and Delhi plant will avail CENVAT credit of this amount.
Thank you for your reply, i am having onemore doubt, in the above case how to calculate the assessable value?
If finished good then refer rule 7- sale price of product at Delhi as on date of despatch from Chennai.
If unfinished then COP + 10%.
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