Removal of small components after delivery and invoice is raised for main machine

[Anubhav Gupta]

Hi,

We are in process of delivering a machine under an invoice. However, few smaller components of them same will be removed after delivery of main machine. The cost of these components is built into the main invoice. How can we remove these goods without payment of excise as excise duty will be paid on the main invoice.

AI Summary

Removal of machine components without additional duty: parent invoice procedure permits paying duty on the whole machinery and separate part consignments.
A manufacturer may, after notifying the jurisdictional officer and furnishing an undertaking, disassemble a machine first assembled for transport and treat its parts as part consignments under a parent invoice. The manufacturer pays the entire duty on the parent invoice, annexes an itemised inventory, issues separate invoices per conveyance, records removals in Daily Stock Account, and CENVAT credit is available only on receipt of the parent invoice and full consignment.