Captive consuption to be shown in ER-1 Return filed through ACES system -reg

[vinay wakde]

We have issued some quantity of finished goods for captive consumption (re-cycle) within the factory purposes, as the quality of said goods is deteriorated and not marketable. How to show the quantity of captive consumption in ER-1 to be filed through ACES system. We have observed that these is no option in the format.

Regards,

VINAY

AI Summary

Excise duty applicability: internal recycling of defective finished goods is not a removal, duty arises only on subsequent removal.
Under the Central Excise Rules, ER-1 reports production and removals; finished goods recycled and retained within factory premises are not treated as a removal and thus are not shown in ER-1. Captive consumption rules for intermediate inputs do not apply to internal recycling of finished goods. Proper books of account and finished stock registers suffice to account for internal recycling, while excise duty and reporting obligations arise only if the recycled output is subsequently removed.