Tool shifting and excise procedure

[Asked by Guest]

Hello All,

I am having qurey regarding Tool shifting procedure..

If  A supplier has developed Tool and using that tool for part production and we have paid the Tool price to the supplier , now  A supplier closed buisness and we need to shift this Tool for further production to Supplier B then how excise duty will be handled in this case..

1.  Supplier A submitted Tooling invoice with excise duty and we paid full to A and shifted tool to supplier B

2. IS B supplier eligible to charge amortisation for excise duty calculation while producing part from Tool which we shifted to him from Supplier A

Waiting for your valuable reply.

 

Thanks & Regards,

RSK

AI Summary

Amortisation of tool can form assessable value for excise, with CENVAT credit affecting capitalisation treatment.
A tool shifted to a new supplier must be accompanied by a challan identifying the tool. The new supplier may include amortisation based on remaining capacity in the assessable value for central excise; that amortisation is not subject to VAT/CST. In bill to/ship to cases a challan is still required. CENVAT credit depends on usage rather than ownership; if the supplier avails CENVAT credit, the purchaser should capitalize the tool net of that credit.