captive consumption

[Asked by Guest]

we manufacture machinery which is used in jute industries.our product is exempted.we consumed some items in a factory as a raw material for making another goods.we have already transferred goods from finished goods to captive consumption and shown in the RG1 register as captive consumption.

Is there is any way to reverse the captive consumption to finished goods???

AI Summary

Captive consumption reversal: may be corrected in records if physical stock exists, subject to official intimation and inspection.
Reversal of captive consumption entries may not be statutorily provided for, but practitioners advise that if physical finished-goods stock exists or the entry was a bona fide mistake, the entry can be reversed in DSA/RG-1 after intimating jurisdictional central excise officials, subject to possible departmental inspection and verification.