Central Excise CT1 & ARE1 Latest procedure.

[Raja krishnan]

Dear Sirs,

Please give brief explanation about the Central Excise CT1 Procedure.

[Rajagopalan Ranganathan]

Sir,

As per para 3.10 of Chapter 7 of CBEC's Excise Manual "Certificate 'CT-1', as specified in Annexure-17 (See Part 7) have to be obtained by merchant-exporters for procuring goods from a factory or warehouse. Such certificates need not be obtained for each consignment but will be given in lot of 25. The same will be issued by the Maritime Commissioner or Assistant /Deputy Commissioner of Central Excise having jurisdiction of the premises of merchant exporter.

[YAGAY andSUN]

In addition to reply by Mr. Rajagopalan, No VAT/CST would be chargeable. If it is treated as CST Sales then it would against Form H. Proof of export would be submitted by Merchant Exporter. AIR Duty Drawback can be availed by either party by issuance of NOC to other one.

[DR.MARIAPPAN GOVINDARAJAN]

Thanks for the valuable knowledge based comments of the experts.

[Raja krishnan]

Thanks U so much Rajagopalan sir.

[YAGAY andSUN]

Status holder are not required to furnish any security/surety in such matters.

AI Summary

CT-1 certificate requirement for merchant-exporters enables tax-exempt procurement for export with export proof and duty-drawback options. Merchant-exporters must obtain CT-1 certificates to procure goods from factories or warehouses; certificates are issued in recurring batches by the Maritime Commissioner or the Assistant/Deputy Commissioner of Central Excise having jurisdiction and need not be obtained for each consignment. VAT/CST is not chargeable on such procurements; where CST applies, sales are to be against Form H. Proof of export is required from the merchant-exporter. Air duty drawback may be claimed by either party via a no-objection certificate, and status holders need not furnish security or surety.