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Excise rule for captive consumption

Prashant Panse (SR.OFFICER) (40 Points)

06 February 2013

What is the rule for captive consumption in excise.? is it necessary to generate excise invoice for the captive consuption?

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CA Rashmi Gandhi (Chartered Accountant) (86461 Points)
Replied 06 February 2013

EXCISE DUTY CHARGEABLE ON 110% ON COST OF PRODUCTION .

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CA ANKUSH AGGARWAL (CHARTERED ACCOUNTANT) (2782 Points)
Replied 06 February 2013

BUt you can avail 8/2006 Notification.Under this Notification No excise duty is to be paid on intermediate goods if final product is not exempted.

Prabhat Kumar (Advocate & Consultant) (1912 Points)
Replied 07 February 2013

Goods manufactured and used captively in manufacturing of final product is exempted from Central Excise Duty.[Notification no.67/95 C.E dated16.3.95]

Amitabha Mukherjee (Sr. Manager, GST) (253 Points)
Replied 11 February 2013

NOTIFICATION 67/95 CE is a well known notification .Whenever any excisable goods are manufactured by the assessee, in the course of manufacture of those goods, intermediate products may also arise which are also excisable. To avoid paying excise duty on such intermediate goods and again on the final products, this notification was issued to exempt such intermediate goods manufactured by an assessee in his factory.

Provided that nothing contained in this notification shall apply to inputs used in or in relation to the manufacture of final products which are exempt from the whole of duty of excise leviable thereon or are chargeable to Nil rate of duty.

That means, if no excise duty is payable on the final products, then this exemption is not allowed. All such manufactures have to pay duty on the excisable intermediate goods emerging in the course of manufacture of exempted final products.

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sid (manager) (22 Points)
Replied 03 March 2014

Dear Sir,

Refer above subject, please let us know is the excise duty payable on intermidiate goods when both the intermediate goods as well as the final product is exempted from excise.

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sid (manager) (22 Points)
Replied 03 March 2014

Dear Sir,

Refer above subject, please let us know is the excise duty payable on intermidiate goods when both the intermediate goods as well as the final product is exempted from excise.