Ct-3 material sales procedure

 (v)Disposal of Left Over Material /Fabrics into DTA on Payment of Duty on Transaction Value instead of Value Declared at the Time of Import 

          13. In the  new  FTP, in paragraph 6.15 (c),  it has been provided that in the case of textile sector, disposal of leftover material/fabrics up to 2% of CIF value or quantity of import, whichever is lower,  shall be allowed on payment of duty on value determined as per customs valuation rules, subject to the certification of Central excise/Customs Officers that these are leftovers.   

          14. To implement this,  notification No. 52/2003-Cus, dated 31.3.2003 and 22/2003-CE dated 31-3-2003, governing duty free import and procurement,  respectively, by EOU/EHTP/STP, have been suitably  amended  providing that the prescribed percentage of textile materials or textile fabrics shall be treated as goods manufactured in the EOUs and duty shall be charged accordingly i.e on ‘transactional value’ as per Customs Valuation Rules. Earlier, inputs or raw materials, cleared as such (whether leftover or not) were required to pay duty foregone on them (i.e. at the original cif value, for imports, and purchase price for domestic procurements). Now a limited quantity of leftovers can be cleared attransaction value. It may be noted that the exemption is limited to the specified quantity of textile materials and textile fabrics only. In other words, concession would not be available to, say, zip fasteners, though used in the textile sector.

https://www.cbec.gov.in/customs/cs-circulars/cs-circulars04/54-2004-cus.htm

In your case warehouse will be the place of removal for the purpose of excise.Assess the duty at the time of removal for the goods,prepare the invoice as per rule 11 of C.E Rule and sell it to your buyer.