TaxTMI 
TaxTMI 
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 ?
CAPTIVE CONSUMPTION
11 Oct 2014 
4 Replies 
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Captive consumption: duty attaches to the final product; report final goods and adjust excise records accordingly.
Use of finished goods as inputs constitutes captive consumption and triggers Central Excise duty on the resulting finished goods; excise returns should report the final goods and related clearances, statutory records (including RG 1) must be adjusted to reflect manufacturing, home clearance, captive use and closing balances, and the applicable notification on captive consumption should be referenced in filings. (AI Summary)
Use of finished goods as inputs constitutes captive consumption and triggers Central Excise duty on the resulting finished goods; excise returns should report the final goods and related clearances, statutory records (including RG 1) must be adjusted to reflect manufacturing, home clearance, captive use and closing balances, and the applicable notification on captive consumption should be referenced in filings. (AI Summary)