Founder, Coral Soff'wares Ltd
Gaurav Kantiwal
Chartered Accountant
Account Executive
+2 Others

I need to know about Captive Consumption >>Excisable Raw Materials Company Purchase for make Finish Good but company used/consumed its for own manufacturing plant for making some instruments, and already Excise credit taken against that material.
Then what is the process to Set off this Captive Consumption. Which steps i have to take for Excise point of View.
22nd January 2013 From India, Mumbai
captive consumption means using the goods produced by a unit by itself for its regular use
or for manufacturing another product.
example; A steel manufacturing co. can use steel produced by it for constructing a
building in the factory itself.
or using steel plates manufactured by it for its civil contract projects like using steel for
constructing bridges
using steel for producing cranes or machinery etc.,
central excise provisions prescribed certain procedure to levy duty on this captive consumption.
17th February 2013 From India, Mumbai
Dear Sir
First of all Would like to say thanks for reply.
Then whats the further process about Setoff this Capative Cunsumation.
which steps i have to take for Excise point of View. actually we had taken Excise credit on that row material but Material cunsumed in factory premises
Should i calculate that cunsumued material value and then Calculate excise on that and file its in Next Months Excise Retun. OR WHAT ???
Sushilkumar Chaware
24th February 2013 From India, Mumbai
You can take only 50% of the Cenvat Credit on Inputs which have been consumed for development of a Capital Goods items.
If you have taken full credit of Cenvat on these Inputs, reverse 50% of it. This remaining credit can be taken in the next financial year subsequent to the year in which the said Capital Good item has been put to use.
28th February 2013 From India , Calcutta
We are manufacturer of TMT Bars, we transfered the by product of Missroll to our one of another unit for making production and sold out as TMT Bars, in this case, shall we liable to pay exsice duty ? we used the captive goods of missroll for manufacturing and sold and collected excise duty by sold invoice.
As per excise authorities instruction. duty is 110% on value of assessable value. we are not transfer the raw material for making production, it is an by product
So, is it applicable to pay tax of 110% on captive assessable value
Kindly advice
16th March 2013 From India , Madras
There is notification in 6/95 ce notification. Regarding capitive cunsumtion. (kindly please explain someone.)
1st April 2013 From India, Mumbai
Dear Sushil,
CE notification 6/95 is related to exempt the excise duty on the exciseable goods used with in the factory for captive consumption.
It can be defined as:
the Exciseable goods shall be exempt from excise duty if
1. The Exciseable goods is used for captive consumption
2. To produce/manufacture the final product
3. The final product is dutiable
4. used within the factory
Friends, If you have any query related to Excise, Custom and Service tax, Please post here.
Gaurav Kantiwal
7th April 2013 From India, Delhi
Hi sir,
I am Lalitha, I feel it is very good answer.
I have one doubt about service tax on Civil Works with material. we have paid to the contractor service tax @12.36% on 40% of the assessable Value. Whether Reverse charges mechanism is applicable for the same transaction or not? Kindly give your advice... Thanks & Regards..Lalitha
25th May 2013 From India, Bangalore
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