1)Our company produce auto motive parts and tools & dies. 2) Tools & Dies which company produce is used for production of auto motive parts. 3) On these tools & Dies we take benifit of exemption notification 67/95.
Now, I want to ask 1) what if we sold these Tools & dies after 4 years ? Date of rate of tax applicable ? 2)Is exemption of 67/95 remain valid or we have to pay duty as per explanation of Rule 5 of CER 2002 ?
13 June 2013
You have to pay duty at present rate 12.36% on the transaction value on sale of these tools & dies because as per the 67/95 you have been completely consumed these tools & dies and claimed exemption from excise duty. Now these are basically waste & scrap resulting from the manufacturing activity.
CAclubindia
