Issuance of captive invoice for amonia and nitrogen which is used for production of Urea

[Asked by Guest]

We are producing amonia and nitrogen for manufacturing of urea. These are captively consumed for manufactuing of urea. Is applicability of captive invoice issuance is applicable in our activity or not.

[YAGAY and SUN]

Yes, it is required in your case as both the item are excisable.

AI Summary

Captive invoice requirement applies where inputs are excisable, so producers must issue captive invoices for such internal transfers.
A captive invoice must be issued for ammonia and nitrogen produced and captively consumed in urea manufacture because both items are excisable goods; this issuance is a compliance and documentation requirement under central excise for internal transfers of excisable inputs.