To all the exciseperts,
Query - Whether excise duty has to be charged by ther service provider on removal of capital goods / inputs from his premises under Rule 3(5) of the CENVAT Credit Rules? Whether servicer provider has to raise invoice showing excise duty on such removal? Even though he is not manufacturer or has excise registration?
Extract of Rule 3(5) -
(5) When inputs or capital goods, on which CENVAT credit has been taken, are removed as such from the factory, or premises of the provider of output service, the manufacturer of the final products or provider of output service, as the case may be, shall pay an amount equal to the credit availed in respect of such inputs or capital goods and such removal shall be made under the cover of an invoice referred to in rule 9
Central Excise Act & Service tax Act doesnt provide such provisions however, as per CENVAT credit rules, serivce provider has to reverse CENVAT credit avialed on CG/Inputs by virtue of Rule 3(5) of CCR, but does he have to charge excise duty on the cover of the invoice?
Regards,
Geet