CT 1 mandatory despite excise duty to be paid?

[Suneet Bhutta Bhutta]

Hello,

We are a exporter based in Mumbai and are procuring pharmaceutical raw material from manufacturer based in Vapi.we are ready to pay the excise duty while making payment to the manufacturer but manufacturer is asking for CTN to be given. They have asked the excise department in their range and they have said CT 1 is mandatory even if exporter is paying excise duty.

How can I solve this issue? Is there a notification which says that I can still export by paying the excise duty and without submitting the ct1.

Thank you!

[JSW CEMENTLIMITED]

CT1 is issued to a merchant exporter after execution of a Bond supported by a BG before the AC/DC of the jurisdiction of merchant exporter. Against a CT1, goods can be supplied to a merchant exporter without payment of Excise duty under ARE1 procedure. If Excise duty is already paid, still you can mention duty payment detail in the ARE1 and after export, proof of export can be submitted by merchant exporter along with a application for refund of excise duty paid. Normally it is beneficial to export without payment of duty

[Suneet Bhutta Bhutta]

Thank you for your reply. It will take us long time to get the CT1 and do the entire process to obtain it plus the value of goods is only 1 lakh and other man are okay with us paying the excise duty and ARE1 but only this one manufacturer is a problem who says CT 1 is compulsory even though we will pay the excise duty.

They are saying to produce notification that it is okay to pay the excise duty and still give the CT 1

[MUKUND THAKKAR]

CT 1 is compulsory in case if you want to procure the goods for export without payment of excise duty. but if you want to pay exciseduty as marchent exporter in such transcation CT-1 is not compulsory. please contact your supplier range office, range officer will definitely help to you..

[Suneet Bhutta Bhutta]

Thank you Mr. Thakkar for your reply.

[KASTURI SETHI]

The purpose of CT-1 is to safeguard revenue. If CE duty is already paid at the time of export, what is the necessity of CT.1 ? I support the views of both experts.

[YAGAY and SUN]

CT-1 and Payment of Duty cannot go simultaneously/together.

[Ganeshan Kalyani]

I too of the same view as expressed by the experts above. Thanks.

AI Summary

CT-1 requirement may be waived where excise duty is paid and export proof permits a refund application.
CT-1 is issued to a merchant exporter against a bond and bank guarantee to permit supply without payment of excise duty under the ARE1 procedure. If excise duty is paid at supply, duty particulars can be entered in ARE1 and the merchant exporter may submit export proof and apply for refund of duty paid; CT-1 is therefore not compulsory for duty paid transactions.