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

Cenvat reversal on sale of capital goods: seller must reverse or proportionately pay Cenvat credit on moulds cleared as such.
Moulds are capital goods; if removed without use the CENVAT credit must be reversed; if removed after use the seller must pay an amount equal to the CENVAT credit taken reduced by prescribed quarterly percentage points for capital goods, subject to a floor equal to the duty on transaction value; clearance as waste attracts duty on transaction value. Invoices for such "as such" clearances should record the statutory adjustment and purchase invoice details.