09 May 2011
The Central Excise duty is applicable on manufacture of goods. For the sake of convenience, it is collected on the clearance of goods. It is applicable even if it is captively consumed. But the exemption under notificaiton 67/95 is available to inputs if final product is dutiable. And exemption to Capital goods is available if Cenvat credit is available to the manufacturer on such capital goods. Thus, the cenvat credit will not be available on such such captive consumption.
09 May 2011
If the cativley consumed product is input then the Cenvat credit on inputs will not be available as final product is not taxable. Rule 6(1) will be applicable. If the captively consumed goods is capital goods and Cenvat is available on the same then there is no need to pay the duty. It will be exempt under notification 67/95 as stated above. The duty is to be paid on such capital goods on which cenvat credit is not available.