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

Exemption for supplies under international competitive bidding can cause excise liability on captive intermediate goods.
If a finished good A is captively used to make finished good B which is exempt under an international-competitive-bidding exemption, A will not qualify for the captive-consumption exemption and is liable to excise unless independently exempt. CENVAT treatment turns on Rule 6(iv)/6(iva): where B's supply falls within those rule-based exemptions, credit reversal on inputs for A is not required; otherwise credit taken on duty-paid inputs used in A must be reversed, or duty paid on A with corresponding input credit claimed.