Purchases of HSD aganist form CT-3

[Guest]

Dear Sir ,

We are one of the 100% EOU and procuring  goods duty free aganist form CT-3 (Indigenous)  & Procurement certificate (Imported) issued by the Superintendent -Customs & Central Excise , now we have received letter form our Range Central Excise office that they will not issue CT-3 for Procurement certificate of duty free HSD from Refinery (Panipat) as per notification no. 17/2004-CE(NT) dated 04.09.2004 & CBEC Circular no. 799/32/2004 dated 23.09.2004 and demanding duty aganist the previously procured duty free HSD aganist CT- 3 since 2004.

You are requested kindly guide us with suitable notification/ CIrcular enabling us to same  our duty and for further procurement of Duty free HSD.

Regards ,

Ravindra Kumar

[Snehal Kulkarni]

In our view, you are requested to pay the duty and avail the cenvat Credit as Input and utilised the same toward the DTA clearance or claim for refund.

Also advisable to pay the duty along with the interest before issuance of SCN. If the SCN will be issued, then you are not entitled to avail the Cenvat Credit.

 

 

AI Summary

Duty on HSD procured against CT-3: pay duty and claim cenvat credit or refund to avoid loss of credit. Range refusal to issue procurement certificates for duty-free high speed diesel under CT-3 has prompted demands for duty on prior procurements. The practical advisory is to pay the duty and avail Cenvat Credit for use in DTA clearances or refund claims, and to pay duty with interest before issuance of an SCN because issuance of an SCN may bar availing Cenvat Credit.