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

Excise duty on captive consumption: not payable unless removed; samples and domestic sales attract duty; exports may require duty.
Excise duty is payable on sample/demo sales, control samples and domestic sales regardless of Cenvat credit status; captive consumption is duty free only while goods remain in factory and are not invoiced or removed. Exports without bond or LUT attract duty at clearance but duty paid may be claimed as rebate. The exemption for captive consumption operates only if the final product is dutiable; if the final product is exempt, duty must be paid on the intermediate product. Payment for clearances made without export documentation must be effected from PLA.