Excise Duty not paid on Captive/Internal Consumption

[rajendra rohit]

The company has been engaged in the manufacturing of dutiable goods & exempted goods, dutiable goods are internally consumed for manufacturing of exempted goods.

At present we are availing of Cenvat credit on inputs of dutiable goods and utilised the same on removal of dutiable goods on following transaction;

1. Domestic Sales
2. Sample / Demo Sales
3. Captive Consumption
4. Control Sample etc...

Now, we want to know that, If we are not availing of Cenvat credit on inputs of dutiable goods and no duty has been paid on removal of goods on below such transaction;

1. Sample / Demo Sales
2. Captive Consumption
3. Control Sample etc...
4. Will pay the duty on Domestic Sales or Export Sales (if Export without Bond)

What the procedure for below mentioned transaction is? Please suggest.

AI Summary

Company Queries Excise Duty on Internal Use of Dutiable Goods for Exempted Products; Duty on Captive Use Clarified A company involved in manufacturing both dutiable and exempted goods queries about excise duty obligations on internal consumption of dutiable goods used in producing exempted goods. They currently use Cenvat credit for inputs on dutiable goods for various transactions, including domestic sales and captive consumption. The company seeks advice on duty payment procedures if they stop availing Cenvat credit. Responses clarify that duty must be paid on sample/demo and domestic sales, but not on captive consumption unless goods leave the factory. For exports without a bond, duty is payable but rebate claims are possible.