Excise duty liabilities on one FG use in other FG within the Factory

[Chetan Pawar]

Dear All,

We are the Chemical manufacturing unit, Recently we have already produced one A FG Product but some reasons we have utilized the same in another B FG product and the same ( B FG Product) has been clear without payment ofExcise Duty against notification No.012/2012 dt.17.03.2012 (Sr.No.336).

Can you please tell me what is the Excise Duty Liabilities comes on A FG Product.or is their any notification or rules in this regards??

Awaiting your replies.

Thanks and Regards,

Chetan Pawar

AI Summary

Chemical Manufacturer Queries Excise Duty on Using Finished Goods; Rule 6(6)(iva) of CENVAT Credit Rules Applies A chemical manufacturing unit queried about excise duty liabilities for using one finished product (FG A) in the production of another (FG B), which was cleared without duty under a specific notification. Respondents advised checking Rule 6(6)(iva) of the CENVAT Credit Rules, 2004, and clarified that if FG B is exempt under international competitive bidding, FG A might not qualify for captive consumption exemption. If FG A used duty-paid inputs with availed CENVAT credit, reversal might be necessary unless specific conditions under the notification are met.