TMI BlogRequirement of Excise Invoice for Captive ConsumptionX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Experts, Please, suggest whether goods used as captive consumption require any excise invoice or we can consume it without raising any excise invoice ? Regards Ashish - Reply By Rajagopalan Ranganathan - The Reply = Sir Proviso to rule 52 A (2) of Central Excise Rules, 1944 provided that in case of captive consumption within factory in a continuous process, manufacturer may make a s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingle invoice at the end of the factory day. However Central Excise Rules, 1944 was replaced by Central Excise rules, 2002 which came into force on 1.3.2002. rule 11 of 2002 rules is corresponding to rule 52 A of 1944 Rules. The above mentioned provision of issuing invoice is not found in rule 11 of 2002 Rules. Therefore if the duty payable on captively consumed goods are nil no invoice need b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issued by the manufacturer. - Reply By YAGAY AND SUN - The Reply = Perfect reply. - Reply By KASTURI SETHI - The Reply = I concur with views of both experts. Rule 5 and Rule 11 of Central Excise Rules,2002 are silent regarding issuance of invoice. Rule 5 (2) Explanation only talks of the date of removal and not about invoice.It means manufacturer's own record /document would suf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fice for accountal of goods to be used captively. - Reply By Mahir S - The Reply = Yes Sir, I also agree to the above views based on rule 11 of CER, 2002. Further, I also take this opportunity to add on the above issue and to further clarify the matter, as submitted below in my separate reply. - Reply By Mahir S - The Reply = Ashish Ji, (i) Under the provisions of Central Excise, mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e movement of goods within the factory premises would be treated as Captive Consumption. (ii) If you are using the intermediate manufactured goods into the manufacturing of different articles, you need to check that whether the final product is liable to excise duty? (ii a ) If the answer is Yes, no need to pay any duty of excise as the same is exempt. However, you need to keep an account on dai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly basis for such goods manufactured in the factory and further issued for captive consumption, either in the form of register/book/challans/invoices. (ii b ) If the answer is No, you need to calculate the value as cost + 10 % and pay excise duty on the value thus arrived at; by raising Excise Invoice. - Reply By Mahir S - The Reply = Sir, W.r.t. point (ii b ) above, you may further refer to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 8 of valuation rules read with Board Circular no. Circular No. 975/09/2013 - CX dated 25.11.2013. - Reply By Ashish Bansal - The Reply = Thanks to all of you experts for your valuable replies and resolving the issue in such a short time. - Reply By KASTURI SETHI - The Reply = Sh.Mahir S., Thanks for additional information on the issue. Every information has its val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue. Hence it is natural that such all-round replies will further boost every questioner's belief in Experts and, in turn, towards Discussion Forum of TMI. - Reply By Mahir S - The Reply = Yes Kasturi Sir ji , surely agree with your above view point. - Reply By Prabin Swain - The Reply = Dear Mahir Ji, your opinion (iia), Whether anywhere it is mentioned in Rule/Act/Notification/Circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar/Instruction that internal records is sufficient. if yes please guide for that reference Regards Prabin - Requirement of Excise Invoice for Captive Consumption - Query Started By: - Ashish Bansal Dated:- 26-1-2016 Central Excise - Got 10 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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