E 1 TRANSACTION

[PIRAMAN ESSAKKI MUTHU]

PLS ADVISE ON THE FOLLOWING ISSUE:

1. WE,say C, ARE MANUFACTURERS OF CAPITAL GOODS.

2. We are in Tamil Nadu  our customer -say T -also in Tamil nadu.

3. Our customer's buyer-say K  -is an 100% EOU in kandla SEZ.

4. The Ultimate consignee=K- in SEZ Kandla issues CT3 certificate directly to us-C- to lift the material without payment of ED.

Can we -C-move the material  by preparing Invoice- T- as Buyer and K as Consignee without payment of ED against CT 3.

Pls note that as per Notification 22/2003 CE states that ' the user industry should lift the material directly from the manufacturer's factory

[Surender Gupta]

The proposed preparation of Invoice in the name of actual user as consignee should be allowed as due compliance of the conditions of the notification.

AI Summary

CT-3 certificate permits delivery without excise duty when conditions are met; invoice may name the end-user consignee. Manufacturer may invoice naming the actual user as consignee and dispatch goods without payment of excise duty against a CT-3 certificate, provided the conditions of the relevant notification governing direct lifting by the user industry are complied with.