Captive consumption

[NANDA H.L.]

Dear Experts

1. We manufactured one CNC machine & made captive consumption without payment of duty under notification No.67/95, manufactured in the year September 2012, valued at ₹ 7.05 lakhs. We have availed input credit of ₹ 35000.00 (including Cess)
2. During captive consumption we have made the self invoice & communicated to Range office with cost accountant certificate
3. Now we are planning to sell the same. Need a clarification, what is the duty to be charge & also duty availed on the inputs used to be reverse?

Please clarify.

AI Summary

Captive consumption exemption: sale of a previously exempt capital good requires payment of duty based on transaction value.
Sale of a capital good originally cleared under a captive consumption exemption without payment of duty triggers liability to pay excise duty on the transaction value; if CENVAT credit had been taken on the capital goods, an amount equal to the credit reduced by specified quarterly percentages must be paid on removal after use, but if that amount is less than the duty on transaction value, the duty on transaction value governs.