Annexure-45 & CT-3

[sukhvinder singh]

Respected All,

 

Please tell me the difference when Any material may be removed without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, for use in the manufacture or processing of goods which are exported, as may be approved by the Commissioner Against Annexure-45 & CT-3.

Thanks & Regards

 

 

[Sunil Vaidya]

The Annexure 45, prescribed under Rule 3 of the Central Excise (Removal of goods at concessional rate of duty for manufacture of Excisable goods) Rules, 2001.

Some of the goods are exempted from Central Excise duty for use in the manufacture of specific Excisable goods (in general term this exemption is referred as endues exemption). For example, refer Not. No.12/2012CE dt.17.03.2012. Against  Sr. No.55, all goods which are used for manufacture of fertilizer are exempted. However, where such use is in the other factory of production, the exemption is allowed if the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, is followed i.e. the said goods can be removed to the fertilizer factory under Annexure 45 at the prescribed concessional rate (includes full exemption, if any). There are number of other commodities exempted on the same grounds in the said Notification.

Even for the SSI units, who are in the manufacture of spare parts or components of original branded equipments, vide condition at para No.4 of Not. No.9/2003CE dt.01.03.2003, the same facility has been provided, which is as follows;

“4.  The exemption contained in this notification shall not apply to the specified goods bearing a brand name or trade name, whether registered or not, of another person, except in the following cases, namely :-

(a)          where specified goods, being in the nature of components or parts of any machinery or equipment or appliances, are cleared for use as original equipment in the manufacture of the said machinery or equipment or appliances by following the procedure laid down in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 :

Provided that manufacturers, whose aggregate value of clearances for home consumption of such specified goods for use as original equipment does not exceed rupees one hundred lakhs in the financial year 2002-2003, as calculated in the manner specified in paragraph 1, may submit a declaration regarding such use instead of following the procedure laid down in the said Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001;”

(Para 4 incomlete)

 

Whereas, the CT-3 procedure is basically for removal of excisable goods under Bond from Domestic Tariff Area(DTA) units without payment of duty to the EOU (Export Oriented Units) or STP (Software Technology Park) etc. units, for further processing, manufacture or even can be used for capital goods by the said units.

Sunil Vaidya.IRS(Retired)

 

Consultant

AI Summary

Concessional removal for manufacture: Annexure 45 allows duty free transfers for specified end uses; CT 3 covers bonded removals to export units. Annexure 45 under the Central Excise concessional removal Rules permits duty free or concessional transfers of specified goods for use in the manufacture of designated excisable products in another factory, implementing an end use exemption subject to procedural compliance and limited declaratory relief for certain small suppliers. CT 3 is a separate bonded removal procedure allowing Domestic Tariff Area units to send goods under bond to export oriented or similar units for further processing, manufacture or capital use without payment of duty, operating under distinct procedural requirements.