Invite friends
I want  answers   advisors   relevant links   my network

How it works
Register!          Forgot password?

All Manufacturing Advice
Unanswered Queries
FileAgent Document Exchange
Council Members
Advisor Rankings
Top Rated Advisors
NameAsk Me Rate (in AA$)
Sencan Topaloglu N/A
desti mona N/A
veronica iamlatin N/A
Kranthi Kumar $10.00   
Bhargava BVN $1.00   
Ashok Vundavalli N/A
Nagarajan S N/A
Prabhakara Rao Kuppi N/A
Amit Agarwal N/A, Ltd N/A
More Advisors...

Home > Categories > Business and Economy > Manufacturing > View Advice  

Query from: Apurva Khandelwal, kolkata,India, 02/22/08
Topic: MANUFACTURING      Submitted on:
Subject: if I have sold material with CT-1 bond how to avail my excise duty on my purchase

I have recd an order from an merchant exporter who will purchase against CT-1 bond with which i will not charge any Excise duty from him. But how will I adjust the excise duty paid by me on my purchase?

Rate = 2.5 (Rated by 7 Council Members)
[ This query closed ]
Response from: Gokula Kanna,   
Registered Member on
Source: This information comes from my own knowledge.
Hi Apurva,

FORM CT-1 pertaint to Certificate for procurement of excisable goods for export without payment of duty.

Visit…, you can get access to "Export Procedures in Central Excise" In relation to Central Excise and customs, following are the concessions/incentives for exports : (1) Exemption from duty on final products (or refund of duty paid). (2) Exemption/Refund of excise and customs duties paid on inputs. This would answer your query.

Please go through this clarification…

Supplies under Deemed Exports be relieved from Excise burden for non-utilisation by the buyer

Though excise duty is not applicable for supply under deemed export, but as per procedure against CT-3 form given by the buyer, the goods are removed under AR-3 without payment of excise duty. However, this AR-3 is required to be countersigned (after receipt at buyer's end) by the concerned jurisdictional Excise authorities. Only on receipt of the counter signed AR-3 the seller is discharged of duty liability burden. Due to this the seller are not in a position to sale under deemed exports without sureties from the buyers towards excise duty burden. The buyer are not willing to give such sureties since if they import directly they are exempted from customs duty, additional duty and SAD whereas when they take supplies from domestic source CST is being charged. In addition, if they have to provide sureties for excise duty, there is no benefit on DTA procurement.

Therefore, it is suggested that once supplies are made under CT-3 the burden of excise duty, if any, for non-utilisation may be on buyer and not on seller.

Clarification: When goods are supplied without payment of Central Excise duty on the strength of CT-1/CT-3 under the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture Excisable Goods) Rules 2001, the supplier’s liability to pay Central Excise duty gets extinguished no sooner the goods leaves his premises. There is no requirement of obtaining a re-warehousing certificate. In all situations the responsibility for payment of duty of such goods after they have left the supplier’s premise shall be on the buyer. It is only in the case of supply to EOUs that both the supplier and the buyer (EOU) are jointly and/ or severally liable to pay duty on the said goods if lost in transit. However, once the goods are received by the EOU then in such case also the responsibility of payment of duty rests upon the buyer (EOU).

Under Rebate scheme one first pay Excise Duty and after submitting proof of export claim the duty involved from the department. Under CT-1 first Bond is executed mostly without bank guarantee and goods exported without payment of duty.

The bond shall be equal to the duty amount involved and exporters shall furnish surety equal to full bond amount or security equal to twenty five percent. (25%) of the bond amount.

You can get registered in this:…

and get your doubts cleared.

Rate = 2.5 (Rated by 9 Council Members)

More Manufacturing Advice


Privacy Policy
Terms & Conditions
Ask Agent™ Tech Support/Help
Contact Us
Advertising Program
About the Ask Agent™ technology
Affiliate Program
Celebrity Queries
Latest Updates

Get the latest queries and responses via  Add Ammas Gadget to your iGoogle
Important Disclaimer: This question and answer system is open to the public. The opinions expressed are those of their individual authors, as attributed beside each item of advice. Neither the authors nor the information they provide are endorsed by this website. We recommend using common sense, making your own inquiries, and, if necessary, seeking professional advice before relying on material generated on this site.

Copyright © 1998 - 2017
Powered by Ask Agent
Patents filed since 2001 -- Request Patent Numbers