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TMI BlogIS CAS 4 CERTIFICATE REQUIRED ( RULE 8 OF VALUATION)X X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, We had sent a intermediate product to one of our processor(Job worker) under rule 8 Valuation on duty payment alongwith with CAS4 certificate and he had availed credit on that , but the product has remained unused, So if the job worker has to sell such product without processing, So whether he has to do valuation under rule 3(5) of Cenvat credit rules 2004 , by reversing full credi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t availed on that product, IF yes then whether for such clearance is it required to issue CAS 4 certificate again by the processor at the time of sale of such products. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Rule 8 of Central Excise Valuation (Determination of Price of Excisable goods) Rules, 2000 states that- 8. Where whole or part of the excisable goods are not sol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value of such goods that are consumed shall be one hundred and ten per cent of the cost of production or manufacture of such goods. My basic doubt is whether sending the intermediate product to a processor under job work notification can be treated as captive consump ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion. Captive consumption means goods are not sold but consumed within the same factory or another factory of the same manufacturer, that is, inter unit transfer. In your case clearance of intermediate product to one of your processor cannot be treated as captive consumption. Therefore you need not follow rule 8 for valuation of such intermediate product. It can be sent to the processor by quoting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... normal transaction value as if you have sold to independent, non-related buyer and of course on payment of duty. The processor can avail the credit of duty paid by you and adopt transaction value as per his invoice for payment of duty when sells the intermediate product as such and utilize the credit taken. - Reply By Rajagopalan Ranganathan - The Reply = Sir, Rule 8 of Central Excise V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aluation (Determination of Price of Excisable goods) Rules, 2000 states that- 8. Where whole or part of the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value of such goods that are consumed shall be one hundred and ten per cent of the cost of production or manufacture of such goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... My basic doubt is whether sending the intermediate product to a processor under job work notification can be treated as captive consumption. Captive consumption means goods are not sold but consumed within the same factory or another factory of the same manufacturer, that is, inter unit transfer. In your case clearance of intermediate product to one of your processor cannot be treated as ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ptive consumption. Therefore you need not follow rule 8 for valuation of such intermediate product and you do not require to obtain CAS-4 Certificate. It can be sent to the processor by quoting normal transaction value as if you have sold to independent, non-related buyer and of course on payment of duty. The processor can avail the credit of duty paid by you and adopt transaction value as per h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is invoice for payment of duty when sells the intermediate product as such and utilize the credit taken. - Reply By Pradeep Khatri - The Reply = Dear Sandesh, Rule 8 of the Valuation Rules, is not applicable in your matter. Please pay duty under Section 4 of the Central Excise Act, 1944 read with Rule 3 of the Valuation Rules . Further, in our opinion, even Rule 10A of the Valuatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Rules would not be applicable, since, Job-work is not done. Regards YAGAY and SUN (Management and Indirect Tax Consultants) - IS CAS 4 CERTIFICATE REQUIRED ( RULE 8 OF VALUATION) - Query Started By: - SANDESH SHINDE Dated:- 26-8-2014 Central Excise - Got 3 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Manageme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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