CT-3 for RM and the final goods are exempted!

[VVFINDIA Taloja]

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

AI Summary

CT-3 issuance for input procurement by an EOU: allowed but DTA clearance of exempted goods may trigger duty recovery.
An EOU may issue CT-3 to procure raw materials for manufacture of goods for export or permitted DTA clearance, but where the finished goods are excise exempt CENVAT credit on inputs is denied and duty recovery under the applicable notification may be required upon DTA clearance of non excisable or exempt goods; additionally, concessional central sales treatment against Form C may not apply and CST must be charged on such DTA supplies.