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!

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.