Export Benefit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 December 2010 Our company is manufacturer and exporter of pharma products (Formulation). Our unit is in Deharadoon (Excise duty exempted area). To manufacture the products we procure some inputs through Domestic market and some of are Imported material under advance licence i.e. nil custome duty

1) I would like to know, can we issue CT-2 or Ct-1 form to supplier so that they should not charges excise duty. If yes what is the procedure ?
2) Shall we obtain option of Refund of excise duty paid on input, even thow some material are imported under advance licence i.e. nil custome duty ?
3) Is there any option / rules so that supplier should not charge excise duty, if yes, what is the procedure?
Can you advice me with relevant Section / Rules / or Notification under Excise & Customes act. ?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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10 February 2011 SIR / MADAM,

CT-1 is a certificate on the basis of which a merchant exporter can procure excisable goods for export without payment of duty.

CT-2 is used for procurement of excisable goods without payment of duty under procedure for export warehousing.

CT-3 is similar to CT-2 but issued by Superintendents in Charge of EOUs. Only on receipt of CT-3 certificate, the manufacturers can commence supplies without payment of duty to the EOU.

A manufacturer exporter who is desirous of removing goods for export without payment of duty has the option of furnishing a letter of undertaking in form UT-1 in place of executing a bond.

Such an option of furnishing a letter of undertaking instead of executing a bond is available only to a manufacturer merchant exporter.

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