Dear Experts,
Pls help me to clarify, whether an 100% EOU can issue CT-3 to procure raw material to manufacture exempted goods? Please consider this particular raw material will be exclusively used in manufacture of exempted finished goods. This finished goods either will be exported or cleared in DTA market to the extent of DTA eligibility.
regards,
Vinayak
Can 100% Export Oriented Units Issue CT-3 Forms for Exempted Goods Production? Clarifications on CENVAT and DTA Rules. A discussion on a forum involves queries about whether a 100% Export Oriented Unit (EOU) can issue CT-3 forms to procure raw materials for manufacturing exempted goods. The initial query raises concerns about CT-3 issuance when finished goods are exempt, affecting CENVAT credit. Responses indicate that raw materials can be procured under CT-3 for goods intended for export or Domestic Tariff Area (DTA) supply. However, there is a clarification that for non-excisable goods, duty on inputs used in production is recovered upon DTA clearance. Another response notes that no central sales tax exemption is available against Form C. (AI Summary)
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