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Excise captive consumption

V.Marimuthu (Finance Excecutive-Indirect Taxation) (376 Points)

19 March 2016

X Ltd having 2 plant chennai and delhi, in chennai plant they are manufacturing 4 units A,B,C,& D, in delhi plants manufacturing same units A,B,C&D.stock transfer of unit A from chennai plant to delhi plant for manufacturing same unit A. Whether the above stock transfer is captive consumption ?

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4 Replies

CA Ashish kasera (Mumbai) (143 Points)
Replied 22 March 2016

No because capitive consumption means using of goods of earlier unit for producing another unit that is b so in this case captive consumtion not apply. Unit a issue supplementary invoice

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Niraj Kumar Sinha (Sr. Officer, SPSIL) (648 Points)
Replied 22 March 2016

This stock transfer will be treated as sale for Chennai plant and Chennai plant will have to pay excise duty against this invoice and Delhi plant will avail CENVAT credit of this amount.