Getting Steel from Steel Mill under Nil Duty against Invalidation letter issued by DGFT

[Vijaya Bhaskar N]

Dear Experts

WE want to procure raw material from domestic market agst.Advance licence without payment of central excise duty. The Finished goods produced will be SUPPLIED OUR CUSTOMER WHO IS THE ULTIMATE EXPORTER Pls.guide us in the following points.

1. what will the document to be given to Raw material supplier by us . WE ARE NOT DIRECT EXPORTER

2.What remarks to be mention in the invoice by Raw material supplier.

3. whether manufacturer supplier of material can supply the material without payment of duty

agst. Advance licence.

Pls give any refrence of Notification /Circular for Export under advance licence.

REGARDS,

N VIJAYA BHASKAR

AI Summary

Advance licence invalidation permits nil-excise supply if supplier holds intermediate authorization and invoices against it.
An advance licence invalidation letter enables supply of domestic raw material under nil excise duty only after the supplier obtains an intermediate advance authorization or receipt number; the supplier must state on the invoice that supply is against that authorization or receipt, and the receiver must endorse the invoice or provide a receipt certificate to substantiate nil-duty accounting, while practical application of the exemption follows Notification No. 44/2001-CE(NT) as amended and may result in suppliers preferring to pay duty and seek refund.