Query on intermediate goods- practical

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INTERMIDIATE GOODS IS FULLY EXEMPT IF FINAL PRODUCT IS DUTIABLE

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IN EXCISE - What is the treatment of intermediate goods??????

Suppose in a company four products manufactured.. every finish goods manufactured by consuming preceding ..

Suppose Sequence as like this A-B-C-D(ALL ARE EXCISABLE & DUTIABLE )

as we know that 1-intermediate goods are exempt if final goods is dutiable.

2- as per rule 8 of ce val. rules 2000- Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be [one hundred and ten per cent] of the cost of production or manufacture of such goods.

Some quantity of A,B,C,, sold out when they finished & some used in manufacturing of next goods...........D is not used in manufacturing its only sold out....

now what will be excise status of goods A,B,C,D, in above case????????duty on removal or exempted or duty on 110% of cost of production(deemed removal)?????????

INTERMIDIATE GOODS IS FULLY EXEMPT IF FINAL PRODUCT IS DUTIABLE

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Rule for valuation of Intermediate prodcut (Captively Consumed)- Rule 8 of Central Excise Valuation (Determination of Price of Excisable goods) Rules, 2000.

Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be one hundred and ten per cent of the cost of production or manufacture of such goods.

But Notification No. 67/95-CE dated 16.3.1995 as amended exempts the intermediate goods if captively consumed from payment of duty. Therefore you need not pay duty on such goods just raising an invoice with a mention exempted under Notification No. 67/95-CE dt.16.3.1995 is sufficient.

Goods partially used for final product and Partially Sold:

If the same goods are partly sold by the assessee and partly consumed captively, the goods sold would be assessed on the basis of "transaction value" [provided they meet the conditions of sec.4(1)(a)] and the goods captively consumed would be valued as per Rule 8 of the Valuation Rules. This is because, as per new section 4, transaction value has to be determined for each removal.