Payment of Excise duty

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We are manufacturers of Auto Parts for Auto Industries. We have made some Die's on behalf of the customer and received full payment for the same. We have detained the Dies for production on behalf of our customer. But the customer is asking commercial invoice for the die's as he has paid full amount for the same. Whether Excise Duty is leviable on issuing the invoice. If we have kept the die for production on behalf of customer than is that necessary to pay Excise Duty at the time of issuing of commercial invoice.

AI Summary

Excise Duty on Auto Parts Dies: Applicability Under Notification No. 67/95 CE Explained; CENVAT Credit Eligibility Clarified A manufacturer of auto parts queried about the applicability of excise duty on dies made for a customer, which were retained for production. Responses clarified that excise duty is applicable when issuing an invoice, but exemptions under Notification No. 67/95 CE can apply if the dies remain in the factory for manufacturing purposes. The customer can take CENVAT credit upon receiving the dies. If the dies are developed outside the factory, the manufacturer can invoice the customer without excise duty, provided the dies remain in the factory. Ownership transfer does not affect CENVAT credit eligibility unless the dies are physically removed.