CAN WE AVAIL CT-FORM WITHOUT EXCISE REGISTRATION?

[ZIAULLAH THIRUVALLUR]

Dear Sirs,

I am looking at purchasing packaging material (which is excisable) to be used for packing product meant for export purpose .

I would not like to pay any Excise Duty towards the Packaging Material and, thereby, I am willing to obtain CT forms by executing CT bond with the Central Excise.

I would not like to pay any Security/Surety towards the CT Bond to be executed with the Central Excise which needs to be furnished in order to obtain the CT Forms.

Thereby, I am proceeding with obtaining a RCMC (Registration Cum Membership Certificate) with the EPC (Export Promotion Council) which gives me the benefit of obtaining CT Forms from Central Excise by executing CT Bond without any Security / Surety.

My only question is that can I obtain the aforesaid CT Forms without holding an Excise Registration.

I thank the Honourable Experts for supporting my query.

With Best Regards,

Engr. Ziaullah Thiruvallur

Director

M/s United Agro Food Industries.

[Hasmukh Patel]

Dear All,

No registration with central excise is require for obtaining CT-1, but CT-1 is iuused only for finished goods export without payment of duty form factory gate of manufacturer. If you want to procure packing material for your finished goods CT-1 is not applicable for your case. You may procure your inputs-packing materila under concessional rate of duty ( without payment of duty under Annexure 45 procedure). Now after budget-2016 you can procure it with out any permission. You may submit simple declearaation ( Annexure-I) to Asst. / deputy commissioner of C.Excise & Custom.

[KASTURI SETHI]

Dear Sir,

Annexure-45 is prescribed application form under Central Excise (Removal of Goods at Concessional Rate of duty for Manufacture of Excisable Goods), Rules, 2001 which have been substituted with Central Excise (Removal of Goods at Concessional Rate of duty for Manufacture of Excisable Goods), Rules, 2016 vide Notification No.20/16-CE(NT) dated 1.3.16 effective from 1.4.16 and new prescribed application forms for intimation are Annexure-80 (Form I) and Annexure-81 (Form II).

 

 

[ZIAULLAH THIRUVALLUR]

Dear Experts,

Thank you for the excellent support provided on this forum.

As Expert - Mr. Suryanarayana stated the below:

"The best option in this situation available for you to suit your plan to procure the subject packing material without payment of duty, is to procure the same under the Removal of excisable goods (under concessional rate of duty) Rules,2016 which facilitate such duty free procurement of material subject to use in the intended purpose ((manufacture of goods for export - in your case) by giving a self certified declaration to your jurisdictional AC/DC by executing the required Bond as per the provisions."

My question:

Would it be possible to waive off the aforesaid bond / surety / security if I hold a valid RCMC from the Export Promotion Council?

Kindly clarify.

With Best Regards,

Engr. Ziaullah Thiruvallur

Director

M/s United Agro Food Industries

09003992330

08608302201

[PARTHASARATHY V]

Hello,

please refer sl.no.19 it is clearly stated., Bond can't be waived but if you have valid RCMC then BG can be waived

[Vijay kumar]

Dear Mr.Ziaullah Thiruvallur,

As per Nofn.20/2016-CE(NT) dt.1.3.2016 para 4(5), a simple letter of undertaking (LUT) is sufficient without any BG (surety or security) provided the conditions therein are fulfilled. The relevant extract is given below:

"4.(5) The applicant manufacturer shall execute a general bond with surety or security:

Provided that it shall be sufficient to provide a letter of undertaking by an applicant manufacturer against whom no show cause notice has been issued under sub-section (4) or sub-section (5) of section 11A of the Act or where no action is proposed under any notification issued in pursuance of rule 12CCC of the Central Excise Rules, 2002 or rule 12AAA of the CENVAT Credit Rules, 2004."

You have to obtain central excise registration as per Para 2 of the above Notification.

[KASTURI SETHI]

Sh.Vijay Kumar Ji,

Your reply is crystal clear and to the point without i.e. going hither and thither. One grouse against you i.e. you appear seldom in this forum. That is how I miss you.

[bhart b sharma]

in one case decided by Tribunal recently, the packing material procured duty-free was removed at the port and the goods in loose were got packed in the container straight. this was done to avoid wastage of space on account of bags piling within the Containers. the bags procured duty free from the manufacturer were then thrown away by port authorities/sold as waste. revenue could not succeed in demanding duty on said bags procured duty-free. this was Delhi CESTAT decision.

AI Summary

CT 1 eligibility: manufacturer exporters require central excise registration; merchant exporters may obtain CT 1 for finished goods without registration.
Manufacturers procuring excisable packing or inputs under CT 1 generally must have Central Excise registration (Rule 9) to follow the CT 1 procedure; merchant exporters with valid RCMC may obtain CT 1 for finished goods exported as such without excise registration, but bonds remain necessary. RCMC/status holders can be exempted from furnishing security/surety though not the bond itself; Notification 20/2016 allows a Letter of Undertaking in place of security in specified cases. If packing material is not exportable as a finished good, procure under Removal of Goods at Concessional Rate rules or pay duty and claim rebate.