18 March 2013
When an entity produced more than one products and one of final products also used as raw material for other product, then this consumption of first finished products is called captive consumption.
18 March 2013
Ayush Sir do you mean to say that all raw material (including capital goods) brought to factory for utilising in manufacturing the final product(of manufacturer) whether such Raw material/capital goods are purchased from India/DTA or imported?
18 March 2013
yes, suppose abc organisation manufacture final product is "X"... use intermediate goods "Y" and Z" for production of "Z"..
if they sold "Y" directly instead of using it in manufacturing "X"....then its liable to excise duty.... if they sold it to any where in india....for home consumption then liable to excise duty.
here no involvement of Custom. i said normally word home consumption used for custom...but you also find it in excise.