Can we take the mould on lease basis.

[Swapneswar muduli]

Dear Sir,

We are a manufacturer of Electrical Apparatus . If some our Export customer want some unique design for that he want to send us mold on lease basis on his mould we produce one his parts and we making on that parts after tah we sold this material to this customer.

(1) Is this transaction possible in Excise point of view.

(2) Or can we purchase the mould from the customer permanently and we produce it ?

(3) If there is logo of customer on this product in that can we produce this parts with their logo ?

Regards

Swapneswar

AI Summary

Manufacturer Considers Leasing Mold Under CENVAT Rules; Import Duties Apply, Logo Use Approved, Purchasing Risks Trademark Issues. A manufacturer of electrical apparatus inquired about leasing a mold from an export customer for producing unique parts. They sought clarification on whether this transaction is feasible under excise regulations, if purchasing the mold is an option, and the legality of using the customer's logo. Respondents advised that importing the mold would incur import duties, but CENVAT credit could be utilized. Leasing is permissible under CENVAT rules, but purchasing might not be feasible due to trademark issues. Using the customer's logo is allowed, and the process is considered manufacturing, not job work. An alternative suggestion was to use the mold free of charge with specific export conditions.