Captive Consumption, Central Excise

[JSW SEVERFIELD STRUCTURES LIMITED]

 

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.

Posts / Replies

[ajay singh]

Dear ChittiLal. Agarwal.

You have to certify the cost of production on the basis of CAS- 4, from a cost accountant in practise, and on the basis of that certificate you can avail credit.

[shamanthaka mani]

Notification No. 67/95-CE dated 16.3.1995 as amended exempts the intermediate goods if captively consumed from payment of duty.   Therefore you need not pay duty on such goods just raising an invoice with a mention exempted udner Notification No. 67/95-CE  dt.16.3.1995 is sufficient  

[NEERAJ KUMAR, RANCHI]

Dear Mr Agarwal

Mr. Mani has correctly mentioned that as per notification no. 67/95 u need not pay duty for captive consumption of intermediate goods. But as far as your question is concerned that yo have issued invoice as per rule 8 of valuation rule that means on the basis of 110 % of the cost of productionn and paid duty accordingly on that. So in my opinion there is no prohibition in taking credit of that amount.

Regards,

Neeraj

[shamanthaka mani]

Yes, as Mr. Neeraj said credit can be availed on the basis of your invoices.  There is no problem.

[NEERAJ KUMAR, RANCHI]

To add further to my reply, a CAS 4 certificate may be required by the department.

[kothapally Raji Reddy]

Dear Agarwalji

Shri Shamanthaka Mani gave a correct reply by advising you to avail exemption under notification 67/95CE .

rrkothapally

[Mangesh Lokre]

 

The advise given by Mr shamanthaka mani is correct. There is no need to pay the Excise Duty,

 

[pradeep khatri]

Mentioning the Notification 67/95 is mandatory while issuing invoices for captive consumption.