Write Short Notes on Captive Consumption (CAS 4).
Answers
Captive Consumption means the consumption of goods manufactured by one devision and consumed by another devision(s) of the same organisation or related undertaking for manufacturing another Product(s). Liability of excise duty arises soon as the goods covered under exise duty are manufactured but excise duty was collected at the time of removal or clearance from the place of manufacture even if such removal does not amount to sale. Assessable value of good used for captive consumption is based on cost of production. According to the Central Excise Valuation (Determination of Price of Excisable Goods) Rules 2000, the assessable value of goods used for captive consumption is 115% of cost of production of such goods, and as may be prescribed by the Government from time to time