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

[Guest]

let me clear that there is provision under central excise which states that mere movement of goods within the factory premises would be treated as captive consumption. If you are using the intermediate manufactured goods into the manufacturing of different articles, you need to check that whether the final product is liable to excise duty? if the answer is yes, no need to pay any duty of excise as the same is exempt. if the answer is no, you need to calculate the value as cost + 10 % and pay excise duty on the value thus arrived at.

AI Summary

Captive consumption: intra factory movement treated as consumption, affecting excise liability and valuation under central excise law. Intra factory movement is treated as captive consumption. If intermediate goods are used to make a dutiable final product, no separate duty on internal consumption is required; if the final product is not dutiable, determine value as cost plus ten percent and pay excise duty on that computed value.