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TMI BlogCAPTIVE CONSUMPTIONX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, Can we use a finished goods as a raw material for production of another finished goods within factory if yes, then what is treatment in excise. How should we mention it in excise return ? - Reply By Pradeep Khatri - The Reply = Dear Jay Ram, Yes, you can. You would have to pay the Central Excise Duty on the final finished goods which would be emerged out of usage of existing finis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed goods lying the F.G.Area. In the excise return only final goods would be shown. RG-1 would be maintained accordingly. Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants) - Reply By JAY RAM SINGH - The Reply = Dear Sir, Thank you for this information but there is still a bit confusion before me which i am trying to explain with below example. 1. There is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a finished product A which is consumed as raw material for production of another finished product B 2. Both items A and B are also sold separately 3. We had manufactured 10000Pcs quantity of product A in last quarter which had been shown in excise return ER-1 of that quarter (April-June) 4.Now, in this quarter (July-Sep) we have consumed 2000Pcs of product A as well as other raw m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aterials for production of 2000Pcs of product B and we have also sold 3000Pcs of product A and 1000Pcs of product B separately in the market. 5.Now, according to my calculation closing balance of both product should be as under July-Sep Product Opening Mfg. Home Clearance Captive Consumption Balance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A 10000 0 3000 2000 5000 B 0 2000 0 0 2000 6. But you have told that we need not to mention that manufacturing quantity of product A which is consumed for production of B , but we have already mention in excise return of last quarter So, please give your opinion on this point Also request you to mention notification no. and it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s serial related to captive consumption of finished goods 7. also suggest me if i need to mention this notification number and its serial number in excise return Regards, JAY RAM SINGH - Reply By Pradeep Khatri - The Reply = Dear Jay Ram, We never opine that Product A would not be shown as Finished Goods but we had opined that you would have to pay the duty on the finished goods which woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d be emerged out of usage of existing finished goods lying the F.G. Area. You understanding about how this transaction would take place, has already been depicted by you in your point no.5 and we are in agreement with you on this point. Statutory return and DSA (RG-1) would be adjusted/maintained accordingly. While submitting the return you would have to mention Notification No. 67/1995 /16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -03-1995 (Earlier 217/86). Regards, YAGAY and SUN (Management, Business and Indirect Tax Consultants) - Reply By JAY RAM SINGH - The Reply = THANKS - CAPTIVE CONSUMPTION - Query Started By: - JAY RAM SINGH Dated:- 11-10-2014 Central Excise - Got 4 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 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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