II Proviso of Rule 3 (5) of Cenvat Credit Rules, 2004
"Provided further that if the capital goods, on which CENVAT Credit has been taken, are removed after being used, the manufacturer or provider of output services shall pay an amount equal to the CENVAT Credit taken on the said capital goods reduced by the percentage points calculated by straight line method as specified below for each quarter of a year or part thereof from the date of taking the CENVAT Credit, namely:-(a) for computers and computer peripherals:
(i) for each quarter in the first year @ 10%
(ii) for each quarter in the second year @ 8%
(iii) for each quarter in the third year @ 5%
(iv) for each quarter in the fourth and fifth year @ 1%
(b) for capital goods, other than computers and computer peripherals @ 2.5% for each quarter."
Now my query is though “A” is a service provider, he can raise the Excise Invoice? If No, Please specify the procedure?
No, you need not to issue excise invoice, just issue service tax invoice.
And If “A” can raise the Excise Invoice, can a buyer take credit of the duty?
A will issue service tax invoice and buyer can cenvat on the basis of such invoice.