V.Marimuthu (Finance Excecutive-Indirect Taxation) (376 Points)
17 March 2016
amit patil
(Industrial Trainee)
(33 Points)
Replied 17 March 2016
kindly provide me more input about the issue, to the extent I can assume that the Delhi plant is going to use it for Captive consumption ie further use in the manufacture of exscisable goods. Hence assasable value as per Rule 7 of Central Excise Valuation ( Determination of price of excisable goods) Rules, 2000 will be 110% of your cost to be determine as per CAS-4 Statment.
V.Marimuthu
(Finance Excecutive-Indirect Taxation)
(376 Points)
Replied 17 March 2016
X Ltd having 4 units like A,B,C&D in chennai plant, in delhi plant also having same unit A,B,C&D.
the above stock transfer is relating to unit A (chennai palnt) the same stock will be used for same unit A (Delhi plant).
My Doubts,
1)Captive consumption means finished goods of one unit is used to the another unit as material in the same factory is it correct?
2)the above stock transfer is used for the same unit (unit A) of another plant (Delhi) only not another unit, whether this transection is coming under captive consumption ?
amit patil
(Industrial Trainee)
(33 Points)
Replied 19 March 2016
Captive Consumption means usage of manufactured material for further production which is "manufacture" in terms as per Section 2(f) of Central excise Act, 1944.
Hence if I use maufactured material for further production it will be treated as captive consumption. So it can be of two type one is I used it within the factory and I used it for captive consumption in another factory.
Notification: 67/1995 is applicable to earlier one that is if I within the factory capitively consumed the produced goods. And it exempt the duty on 2 conditions first is there is duty liability on final product and another is all levy which is on intermediate goods shall exist on final product.
In your case the above notification is not applicable as it is not in one factory.
In such case assessement will be done at 110% of Cost to be determine as per CAS4
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