#captive consumption

CESTAT Kolkata rules that the transfer of a manufacturing unit to a sister concern for captive consumption does not result in revenue loss if excise duty is paid on the final output. The Tribunal emphasizes procedural compliance over ownership changes, provided the duty chain remains intact.

CESTAT holds that transferring scrap between amalgamated units for captive consumption does not constitute a sale under the Valuation Rules, 2000, rendering Rule 9 irrelevant. This shields internal transfers from valuation adjustments based on third-party prices, directly impacting how manufacturing groups structure scrap handling and claim Cenvat credit without triggering excise demands.

CESTAT Hyderabad rules that sugar syrup used captively in biscuit manufacturing is not liable for central excise duty unless it contains at least 50% fructose in dry state and is proven marketable. The ruling sets aside duty demands, reinforcing that captive consumption alone does not trigger excise liability without meeting tariff classification criteria.