Captive Consumption

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Shambhu Agarwal (Querist)
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05 December 2009 we are the producer of TMT bar (Excisable Goods) and we capitively consumed the TMT bar for our another unit in the same factory/premises resulting in excise duty liability.whether we are liable to able the Cenvat credit of such captive consumption? (Treatment in a/c -: we pass the sale and purchase entry for the same?)
plz give me reply with proper justification instead of yes or no.

S. Banerjee

S. Banerjee (Expert)
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06 December 2009 Mr. Agarwal,
The intermediate product manufactured within factory is exempt from duty, if it is consumed captively for manufacture of (a) Capital goods as defined in Cenvat Credit Credit Rules i.e. those which are eligible for Cenvat Credit or (b) Used for in or in relation to manufacture of final products eligible for Cenvat, made from inputs which are eligible for Cenvat.
Hope this will serve your purpose,
S. Banerjee