Applicability of excise duty - movement within factory

[madhavvan n]

movement of goods within same factory does it amount to captive consumption and what document is required to be attached and value of the invoice and excise duty applicability

AI Summary

Excise Duty Clarification: No Duty on Intermediate Goods in Captive Consumption; Cost Plus 10% if Final Product Exempt. A query was raised regarding the applicability of excise duty on the movement of goods within the same factory, questioning whether it constitutes captive consumption and what documentation is required. The response clarified that under central excise provisions, such movement is considered captive consumption. If the final product is subject to excise duty, no duty is payable on the intermediate goods, as they are exempt. If not, the value should be calculated as cost plus 10%, and excise duty should be paid on this value.