Goods manufactured in one factory is send to another factory (sister unit) for manufacture of another goods - Is it captive consumption

Goods manufactured in one factory is send to another factory (sister unit) for manufacture of another goods - Is it captive consumption - Method of valuation under central excise https://www.taxtmi.com/news?id=816 Transfers of goods to a sister unit are not to be treated as captive consumption and Rule 8 valuation is not automatically applicable; valuation for inter-unit transfers must follow the proviso to the general valuation rule. Where no independent sale exists and cost of production cannot be determined, the residuary valuation rule should be applied and it is reasonable to adopt the invoice value used for taking Cenvat credit, with appropriate depreciation allowed for capital goods. en-us Fri, 01 May 2009 09:08:45 +0530 Fri, 01 May 2009 15:32:00 +0530 TaxTMI RSS Generator Goods manufactured in one factory is send to another factory (sister unit) for manufacture of another goods - Is it captive consumption - Method of valuation under central excise https://www.taxtmi.com/news?id=816 Transfers of goods to a sister unit are not to be treated as captive consumption and Rule 8 valuation is not automatically applicable; valuation for inter-unit transfers must follow the proviso to the general valuation rule. Where no independent sale exists and cost of production cannot be determined, the residuary valuation rule should be applied and it is reasonable to adopt the invoice value used for taking Cenvat credit, with appropriate depreciation allowed for capital goods. News - Fri, 01 May 2009 09:08:45 +0530 https://www.taxtmi.com/news?id=816