passing of credit on sale of mould as such-reg

[Ramakrishnan Seshadri]

Dear Sir,

We have imported some moulds for manufacturing of parts for our supplier. We have taken cvd and sad for that imported mould. We are selling the mould to our supplier as such. He has issued us a PO giving tax structure as 10%+2%+1%. and he wants invoice as per this structure.

Now our question is if we sell the moulds as such how to raise invoice to them. Whether we have transfer sad or how to raise invoice.

Kindly clarify..

Thanks and Regards,

S.Ramakrishnan.

AI Summary

Guidance Sought on Invoicing Moulds Sale: CVD, SAD Credits, and Rule 3(5A) of CENVAT Credit Rules, 2004 A company imported moulds for manufacturing parts and took CVD and SAD credits. They plan to sell these moulds to their supplier, who provided a purchase order with a tax structure of 10%+2%+1%. The company seeks guidance on invoicing and whether to transfer SAD. One response advises raising an invoice with 14% duty (CVD 10%+SAD 4%) and noting 'As such clearance u/r 3(5A) CCR 2004.' Another response clarifies that if the moulds are unused, the credit must be reversed; if used, duty should be paid according to rule 3(5A) of the CENVAT Credit Rules, 2004.