TaxTMI 
TaxTMI 
EXCISE DUTY ON INTERMEDIATE GOODS
16 Dec 2010 
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Excise duty on intermediate goods: captive consumption vs job work determines whether duty applies.
Transfers of intermediate goods between units are treated as captive consumption when consumed within the same manufacturing process and premises, in which case removals used to produce a dutiable final product are not subject to excise; if the final product is exempt, duty is payable. Inter unit transfers constituting job work require permission from the jurisdictional AC/DC and maintenance of a Job Work Register and process flow chart. Reference: Notification No. 67/1995 CE. (AI Summary)
Transfers of intermediate goods between units are treated as captive consumption when consumed within the same manufacturing process and premises, in which case removals used to produce a dutiable final product are not subject to excise; if the final product is exempt, duty is payable. Inter unit transfers constituting job work require permission from the jurisdictional AC/DC and maintenance of a Job Work Register and process flow chart. Reference: Notification No. 67/1995 CE. (AI Summary)
We have Manufacturing the same products amongest the three different unit situated in different place in one organisation and all unit are registered under Excise. Can we transfer semi finished goods or raw material to other unit to manufacturing the same product without paying excise duty if yes what procedure we have to adopt.