Indirect tax- excise

Save Share

This query is : Resolved

aadish (Querist)

07 November 2012
Hiiiiii freinds....Plz solve this query...

A manufacturing company has received some advance from Export parties and local parties for developing tooling( Tooling is hardware which uses for manufacture goods), and company raises invoices without charging Excise duty for the tooling advance received from Parties, now Excise Authorities are demanding Excise on the Tooling Advance received.
Company has shown this tooling Advance as Income from tooling in the p&L A/c and this is non adjustable advance against final delivery of Goods
Further from tooling advance received we purchase raw material for development of tooling from market and claim excise duty paid on raw material.
If there is some decided case or law plz mention.

Plz reply freinds

U S Sharma

U S Sharma (Expert)

08 November 2012 if company has shown the advance as income then it must be billed either in Excise or in service tax.

in absence of any such situation, the department will add the value in taxable clearance.

as you have already availed cenvat credit for tooling expenses, the same has to be cleared with ED. you have option to avail the benefit of capitalizing the same provided the tooling dies are catagorized under capital goods under CCR 2004

aadish

aadish (Querist)

08 November 2012 but as per the excise act excise duty is lavaible only when there is some manufacturing and payable when removal of such goods, but in this case we have received some amount and buy some material from outside and develop tooling and if agar consider kar bhi le tooling develop ko manufacturing , fir bhi removal to hua hi nhi...?

Plz reply

aadish

aadish (Querist)

08 November 2012 but sir manufacturing to he hi nhi agar maan bhi le to removal of goods to huahi nhi..

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now