As per Notification 67/95, It has been clearly understood, Excisable goods manufactured and used within the factory to produce finished goods not required to pay excise duty.
As per valuation rules, Excisable goods which are consumed captively with in plant and dispatch to other units should be valued at cost of production 115%.
Considering the above mentioned points, required clarification on following,
1.Whether goods which are manufactured and captively consumed should be declared in excise returns?
2. If yes, where needs to be declared? Because as per revised E return format no provisions are available to declare the same?
3.Whether RG 1 is needs to be maintained for those goods?
4. Whether excise invoice needs to be prepared at the time consumption?
Request you kindly provide the guidelines to asked queries with rule reference to better understanding and update the knowledge.
12 November 2012
The point wise reply is as under : 1. Yes 2. in fisrt sheet of return, with tariff heading no., take op/mfg/consumption/closing balance and put assessable value as nil and in last column, mention home clearance. 3. RG-1 is to be maintained 4. No, only internal issue slips will be sufficient.
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