Sale against CT-1 certificate

Your unit is receiving raw materials from main unit for manufacture of shoes. CT-1 procedure is related procurement for export only and hence not aplicable. I suggest that your main unit can file undertaking with AC for job work under Noti.214/86 and can send materials to units for manufacture on job work basis and return. Under this scheme the job working unit is exempted from payment of duty. Alternatively, the unit can pay excise duty which is cenvat credit for the main factory. 

Dear Sir,

                    Thanks for your suggetion but we send the finished goods to our main unit and main unit do the export.

In this condition can we sale the goods against CT-1 certificate.

waiting for your kind reply.

Regards 

Arun Verma

Even for export the job work procedure that I have desribed is possible. Alternatively CT-1 can be used for procuring goods without duty for export . But when you use CT-1, it is admitted that the duty liability arises at job work stage which is foregone because of CT-1. In such situation I wonder that only the job working unit can claim cenvat credit and not the main unit. Anyway to conclude, complete facts has to be examined.