Input credit on full value product on captive consumption

Hello Mr. Sachin,

Duty is payble on final product at the time of clearance from factory not on captive consumption as per Notification no. 67/1995-C.E.; In your query, "A" is intermediate product for Product "B" and "B" is finally sold then duty will be charged and paid @ 12.36% without paying duty on "A" @ 2% and without availing the cenvat credit on "R".  Because cenvat is resticted on "A" as per notification 1/2011-C.E. dtd. 01.03.2011 as amended by notification no. 16/2012-C.E. dtd. 17.03.2012.

Further, in my opinion, you should follow its other notification i.e. 2/2011-C.E. dtd. 01.03.2011 as amended by notification no. 19/2012-C.E. dtd. 17.03.2012 by which duty is applicable on the same product "A" is @ 6% with availing the facility of cenvat credit.  Still, duty will be charged and paid on "B" is @ 12.36% and then cenvat can be taken on "R".

Thanks.

Rajeev Kumar Garg

(M.Com, L.L.B.)

Consultant (Excise, Customs & S. Tax), Agra.

Ph. No. 7500802402. 

THANK YOU Mr Rajeev