Supply against Invalidation Letter

[Asked by Guest]

One of our customer holds Advance Authorisation & has provided us with Invalidation Letter for supply them with goods domestically produced by us. We have to send them the goods without excise duty ? Our queries are :

1. We do not hold any Advance Authorisation, are we eligible to supply them with Goods against their Invalidation Letter ?

2. How do we pacify excise for duty free billing against supply of goods against the Invalidation Licence ? Is there any notification for the same with Excise for supply against Invalidation ? We have read Notification No. 44/2001-Central Excise (N.T.) which interprets that we would be eligible to supply the goods only if we hold the Advance Authorisation with us also.

AI Summary

Advance intermediate authorization requirement: manufacturers need authorization or acknowledgement to claim excise exemption; otherwise duty payment required.
Supply against an invalidation letter requires the intermediate goods manufacturer to possess an advance intermediate authorization or an acknowledgement receipt for its application; excise exemption is conditional where supplies are made against a valid advance intermediate licence and its conditions are met, otherwise the manufacturer may clear goods on payment of excise duty.