meaning of by products and intermediate products, Central Excise

[SRINIVAS B V]

Hi All,

Can anyone explain in detailed on difference between by-products and intermediate products with an example please?

Posts / Replies

[umesh subramanyam]

BY-product is a product that is not intended to manufacture but emerges during the process of manufacturing a particular goods. Essentially by-product is a secondary and sometimes unexpected consequence and is made during the manufacture of something else.

Whereas an intermediate goods is a goods that is manufactured with a purpose, which can be either used for the manufacture of an intended final product as such or sold as a final product itself. If you use it,, within your own factory, in the manufacture of a final product using this intermediate product it is called captive consumption.

[SRINIVAS B V]

Thank you very much