Captive Consumption

[JSWSEVERFIELD STRUCTURESLIMITED]

 

Dear Sir,

We are using some of our Intermediate products within the factory as captive consumption., and we have raised the Self Invoice by adopting Rule 8 of the Valuation Rules and discharged the duty.

 My query here is am i eligible to avail Cenvat Credit on the Invoice raised by us as Self.

Please offer your valuable suggestions for availing cenvat credit.

Regards,

 

ChittiLal. Agarwal.

AI Summary

Cenvat Credit Allowed on Self-Raised Invoices for Captive Use; Ensure CAS-4 Certificate and Note Exemption Notification A company inquired about availing Cenvat Credit on self-raised invoices for intermediate products used within its factory. The discussion revealed that under Notification No. 67/95-CE, intermediate goods consumed captively are exempt from duty, and thus, duty payment is unnecessary. However, since the company issued invoices under Rule 8 of the Valuation Rules and paid duty based on 110% of production cost, experts advised that Cenvat Credit could be availed. It was recommended to obtain a CAS-4 certificate from a cost accountant to support the credit claim. Proper mention of the exemption notification on invoices was emphasized.