excise duty on intermediate goods sold between int

Presumably, both the units are situated apart and are holding separate registration certificates under C. Excise Rules.

C. Excise duty is payable on removal of goods manufactured.

There is no exemption even if the goods are to be consumed in another unit of the same manufacturer.

Presently, the exemption is available to intermediate goods only if they are consumed in the same factory in which they were manufactured. (notification 67/95-CE).  

Thanks,
Sanjay Dwivedi

Thanks sanjay

Excise on intermediate goods is otherwise leviable being a manufacture of goods u/s2(f) of the C.E.Act,1944.You may refer to 1983ECR91D(SC) in the case of Khandelwal Metal & Engg.Works.Rule9 and 49 of the CEA,1944 and Rule8 of CEr,2002 may be seen.The goods at the intermediate stage be marketable as held in Union Carbide case 7ECR217(SC).These goods are deemed to be removed as per the rules if are produced at the intermediate stage and consumed in further processing.
But there is circular of the department for exempting goods that are captively consumed bearing no.464/30/99 of 30th June,99 as also notification no.67/95CEX dt.16th March,95.

WHAT IF CAPTIVE CONSUMPTION MEANS IS OF FINISHED GOODS FOR MFR. PROCESS OR BURN AS FUEL WITHIN THE SAME UNIT ( ONE ENTITY) . PLZ SUGGEST ON BOTH THE CASES.  

I am extremly inagrrement with the reply of Sh. Sanjay Dwivedi. Sukhvinder

yes it is excisable by adding the 110% value on materail for duty calculation and same has to bew used only for home consumption not to further sale and the recepient unit can take the CENVAT