Excise on Moulds Received from Overseas Customer

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This query is : Resolved

santosh (Querist)

23 August 2008 Hello Friends,

We have received some moulds Free of Cost from our overseas customer for supplying their components manufactured from their moulds. We have debited the custom duty paid by us on those moulds to that party. We have not taken any Cenvat Credit of CVD involved in those moulds.
Kindly clarify :
1) Whether we should account those moulds in our books since those moulds belongs to that party ?
2) And how should we send back those moulds to that party ? What will be the Excise and customs implications ?

rama ranjan mohanty

rama ranjan mohanty (Expert)

28 August 2008 You can take CENVAT of CVD components as you have paid the Custom duty.

You cannot capitalise the moulds in your books as the property in goods belongs to the foreign buyer.

At the time of exporting the same you can intimate the same to the custom authorities at zero cost showing the import documents at the time of export.

santosh

santosh (Querist)

29 August 2008 What if we have taken the reimbursement of custom duty paid, still we are entitle to take cenvat credit of CVD.

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