Material Purchase Under CT -3

[GORAKHNATH KHARADE]

Respected Sir / Madam

we are 100 % EOU We purchase Material against CT 3

My Querry is

1.Purchasing Material is IPA ,Central Excise Tariff No is - 29051220

Material received against CT -3 , 200 ltrs Drum

1 Drum Contains 200 Liters IPA WE USE IPA THE PACKING MATERIAL IS DRUM

CAN WE SALE DRUM WITH THE HELP OF CIRCULAR.NO 721/37/2003 DTD.06.06.2003.

THANKS & REGARDS

GORAKHNATH KHARADE

AI Summary

EOUs Selling Empty Drums Must Pay Duty on Transaction Value Under Foreign Trade Policy 2015-2020 Rules A 100% Export Oriented Unit (EOU) inquired about selling empty drums used for packing Isopropyl Alcohol (IPA) purchased under CT-3, without payment of duty. The initial response clarified that no duty is required on containers used for packing inputs when credit has been taken, as per a specific circular. However, since the EOU does not take CENVAT credit and purchases IPA without duty, the sale of drums must comply with the Foreign Trade Policy 2015-2020, requiring duty payment on the transaction value. Another response suggested that no duty is needed for EOUs selling packing materials, as duty concerns are managed under the B-17 Bond.