TaxTMI 
TaxTMI 
EXCISE DUTY ON INTERMEDIATE GOODS
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....XCISE DUTY ON INTERMEDIATE GOODS<br> Query (Issue) Started By: - SURYAKANT MITHBAVKAR Dated:- 16-12-2010 Last Reply Date:- 15-7-2013 Central Excise<br>Got 4 Replies<br>Central Excise<br>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 materi....
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....al to other unit to manufacturing the same product without paying excise duty if yes what procedure we have to adopt. Reply By Mangesh Lokre: The Reply: Captive Consumption means the consumption of goods manufactured within the same factory or transfer of goods to a sister unit or another factory of the same company/firm for further use in the manufacture of goods. The goods internally consumed ....
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....to manufacture the final product is termed as Intermediate Goods. Please note : · If the Intermediate Goods are used to manufacture Final Product which is duty chargeable, then on the removal of the intermediate goods for internal use Duty is not payable to the Government. · If the Intermediate Goods are used to manufacture Final Product which is Exempted from Duty, then on the removal of the....
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.... intermediate goods for internal use Duty is payable to the Government. May please refer the NTF. NO. 67/1995-CE, Dated 16/03/1995 Reply By SURYAKANT MITHBAVKAR: The Reply: Whether any premission to be required from Excise Authority to transfer Intermediate Goods to sister concern and what type of record to be maintained Reply By Mangesh Lokre: The Reply: Obviously you have to take the permissio....
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....n from the Jurisdictional AC/DC. In your case, you are suppose to clear the semi finished goods from one plant to another sister plant for JOBWORK and you are going to clear from Sister plants' premises. You have to maintain the Job Work Register and seek the permission from Excise stating the Process Flow Chart. This we think is not the captive consumption but the Jobwork. In Captive consumpti....
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....on, you are utilising the Semifinished product within the same process and same premises. Hope the issue is clear. Reply By Satish Bansal: The Reply: Intermediate product arises in same factory and consumed in manufacture of final product. Final product is exempted from duty by a notification. But final product is exported directly under drawback or Advance authorisation. Still duty on captive ....
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....consumption will be levied?/<br> Discussion Forum - Knowledge Sharing ....