ct-1query by manufacturer export

[satbir singhwahi]

The Manufacturer exporter of Hosiery goods not registered with excise is claiming Drawback. The supplier of Hangers is issuing excise invoice . Whether CT 1 can be issued by Manufacturer exporter if availing Drawback to hanger supplier.

[Rajagopalan Ranganathan]

Sir,

CT-1 Certificate is issued for procurement of excisable goods without payment of duty for using the same in the manufacture of export goods. If you issue CT-1 certificate to manufacturer of hangers then you cannot claim drawback of excise duty paid on hangers since you have procured hangers without payment of duty under CT-! procedure.

[satbir singhwahi]

Sh. Rajgopalan JI

​Thks for reply

1. I want to clarify on duty free purchase of hangers, how the drawback will be adjusted .(the calculation how to be made)

2. whether registration with excise dept is prior condition.

AI Summary

CT-1 certificate prevents drawback claims where inputs are procured duty free under the CT-1 procedure by manufacturer-exporter. A CT-1 certificate permits procurement of excisable goods without payment of duty for use in manufacture of export goods; if inputs (such as hangers) are procured under CT-1 and duty is not paid, the exporter cannot claim excise-duty drawback on those inputs, and questions remain about how drawback calculation and excise registration requirements interact with duty-free procurement.