TaxTMI 
TaxTMI 
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.
Payment of Excise duty
11 Feb 2009 
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Excise duty on transfer of dies may be nil if retained for in factory use; follow amortisation and CENVAT rules.
Excise duty is generally leviable on invoiced transfers of dies, but where dies are retained and used within the factory for manufacture of dutiable goods, an excise invoice with duty NIL may be raised under Notification 67/95 CE. The die's capital cost must be amortised into component transaction values and duty paid on those components. CENVAT credit on capital goods may be retained while dies remain in factory use; if dies are removed later, CENVAT must be reversed per Cenvat Credit Rules. (AI Summary)
Excise duty is generally leviable on invoiced transfers of dies, but where dies are retained and used within the factory for manufacture of dutiable goods, an excise invoice with duty NIL may be raised under Notification 67/95 CE. The die's capital cost must be amortised into component transaction values and duty paid on those components. CENVAT credit on capital goods may be retained while dies remain in factory use; if dies are removed later, CENVAT must be reversed per Cenvat Credit Rules. (AI Summary)