what is captive consumption

If goods are not sold but consumed within the factory then its known as captive consumption.

Yes... Mohit is right..

Yah right, In addition/ edition - If finished goods are not sold but consumed in factory only as a raw material for another/ subsequent proceedings for making another finished goods, it is called captive consumption.

Excise is applicable on removal and captive consumption is said tobe removal. Normally where the final product is an excisable goods liable to duty the intermediate product does not require to suffer the duty u/n 67/95. However where the final product is exempt then the intermeidate product would be liable for duty. Example engine used for manufacture of tractors for agricultural use is liable to suffer duty when used for manufacture of tracrtors for AG use. 

 e.g. one factory manufacturing car but this factory used tyres from its another unit than in this case it is to be said that tyres are captively consumed.

Dear Sir

I have an issue regarding Captive Consumption, Is it possible that a product which was sold in my factory as a finish good but that product using as a raw material in other finish goods for my same factory so what can I do?

If intermediate product is used in manufacture of final product, then it is called Captive consumption.

Final product or Finished goods of a company may be Raw Material for other company.

Your case is same. Your purchased mateiral is Raw Material for your Finished Goods. This is not a Capitively Consumption.

Thank u Madhukar