Intermediate products cleared for Captive consumption

Concessional rate of excise duty on final products is available on the condition that no credit of duty paid on inputs used in the manufacture of goods was taken under the CENVAT Credit Rules. Manufacturer availed CENVAT credit on inputs used in the intermediate products, cleared captively for use in the manufacture of final products. As intermediate product consumed captively were exempted, the assessee paid 8% of the value of intermediate products in as much as they have taken Cenvat credit on common inputs but have not maintained separate accounts.

It cannot be held that the intermediate products are not excisable goods and that they are not exempted. As the manufactuere have not taken credit on other inputs used in the final products, the condition of notification has been fulfilled.