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TMI BlogNotification 67/95 for captive consumptionX X X X Extracts X X X X X X X X Extracts X X X X ..... Notification 67/95 for captive consumption X X X X Extracts X X X X X X X X Extracts X X X X ..... alan Ranganathan: The Reply: Sir, I understand that your query is whether capital goods manufactured by other agency in your factory premises is exempt under Notification No. 67/95. But it can be argued that the other agency is hired labourer then as per Section 2 (f) of Central Excise Act, 1944- "and the word "manufacturer" shall be construed accordingly and shall include no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account." Therefore if the other agency manufacture the capital goods in your account and if the capital goods so manufactured is used for further production of other dutiable excisable goods in your factory then you are e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ligible for the exemption. Reply By RAM SHARMA: The Reply: Whether excise registration is required for captive consumtion of capital goods.Thanks Reply By Arun Kumar Singh: The Reply: If intermediate products are amount to manufacture and that products are used in the manufacturing of exempted final products then duty will be applicable on intermediate goods. If intermediate goods used in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal product and final product are dutiable then no need to pay excise duty on intermediate goods. Reply By Rajagopalan Ranganathan: The Reply: Sir, If the capital goods are used for manufacture of dutiable final products, then you can avail the exemption under Notification No. 67/95. If the other agency is merely manufacturing the capital goods on your account he need not get registered with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the department for the reason that it is manufactured in a factory which is already registered. Reply By Naveed S: The Reply: 1. The other agency can raise excise invoice for manufacture of capital goods in your factory and u can pay and avail the credit thereon. Such capital goods can be used for manufacture of both dutiable and exempted goods and question of exemption of excise duty/registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion/captive consumption therefore does not arise. 2. If Dies/Tools are developed within your factory by the other agency, then you can claim exemption from excise duty under Notification No. 67/95 CE dated 16.3.95 since there is no physical removal of such dies from your factory and instead, the same are retained and used within the factory for manufacture of other excisable goods on which duty i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s payable. However, you have to amortise the total value of the dies over the components manufactured by you and you have to add the proportionate dies cost in each component to arrive at the Transaction value for the components cleared to your customer and pay duty on the components accordingly. Reply By RAM SHARMA: The Reply: Dear Experts,Factory is already registered for manufacturing of excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able goods neither capital goods. whether the factory should amend the excise registration for captively consumed capital goods.Thanks&Regards Reply By Rajagopalan Ranganathan: The Reply: Sir, Since you are already registered under central Excise Act, 1944 no fresh registration is required. Reply By RAM SHARMA: The Reply: R/Sir,I am talking about amendment of registration for capital goods. Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ondly whether we should show these capital goods in Rg-1 and ER-1 Return.Thanks X X X X Extracts X X X X X X X X Extracts X X X X
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