Payment of duty - Dies manufacture, Central Excise

[Rajkumar Chandnani]

We are mfg platic components. We get dies and moulds made from outside on laboue jobwork thru various local tool rooms by supplying metal req for dies. we have taken modvat cr on metal supplied to them in two years @ 50% each year. We have used these dies in production for 2/3 years and there after sold during current year by paying current tariff 8% duty. Department is asking to pay duty @ 16% ,applicable rate , when we got the dies manufactured manufactured. what is correct legal position.

Posts / Replies

[Pradeep Khatri]

Sir, Please refer seventh proviso of Rule 3(3)of CENVAT credit Rule,2004.

[Rama Krishana]

Your action as well as department action are not correct. The provision of rule 3(3) must be followed.