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[Himanshu shandilya]

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CT-3

Duty Draw back

DTA

Central Excise Reg-17/2004

 

[Snehal Kulkarni]

CT-3

Is the Certificate for removal of excisable goods under bond. It is issued by a 100%  EOU to procure the goods from DTA unit without Payment of Duty.

In Normal course, a DTA supplier has to pay the ED on removal of Excisable Goods, but in case of supplies to EOU, the EOU can procure the Duty Free Goods, if interested, from the DTA supplier against this CT-3 Certificate.

The DTA supplier made the supply to EOU against the ARE-3A form ( Warehousing Certificate ). This Certificate have to endorse by the Bond Authority as a token of receipt of the goods in the Warehouse ( EOU ) so called the re-warehousing Certificate.

This re-warehousing certificate needs to present to the Jurisdictional Excise Office within 90 Days from the date of clearance, failure to do so will have to pay the ED along with Interest.

 

Duty Draw back

Duty Drawback are incentives which flow from the schemes framed by the Central government or from Section 75 of the Customs Act 1962, hence incentive profits are not profits derived from the eligible business under Section 80-IB of the Income-tax Act, 1961. They belong to the category of ancillary profits of such undertakings.

Various schemes like EOU (Export Oriented Unit), SEZ, DEEC (Duty Exemption Entitlement Certificate), manufacture under bond etc. are available to obtain inputs without payment of customs duty/excise duty or obtain refund of duty paid on inputs. Manufacturers or processors who are unable to avail any of these schemes can avail ‘duty drawback’. Here, the excise duty and customs duty paid on inputs is refunded to the exporter of finished product by way of ‘duty drawback’.

Section 75 of Customs Act provide for drawback on materials used in manufacture or processing of export product.

Note: Duty drawback under section 75 is granted when imported materials are used in the manufacture of goods which are then exported, while duty drawback under section 74 is applicable when imported goods are re-exported as it is and article is easily identifiable

 

DTA – Domestic Tariff Area

 

Central Excise Reg-17/2004

If you are talking about Non Tariff Excise Notification No 17/2004, then, by this Notification the Central Government has permitted to remove certain Excisable Goods without payment of duty from One Warehouse to Another warehouse

AI Summary

CT-3 certificate enables duty-free supply from DTA to EOUs subject to re-warehousing endorsement and timely filing. CT-3 certificates allow 100% EOUs to procure goods duty-free from DTA suppliers; the supplier must obtain an ARE-3A warehousing certificate endorsed by the Bond Authority as a re-warehousing certificate and present it to the jurisdictional excise office within ninety days of clearance or else pay excise duty with interest. Duty drawback and export incentive schemes refund duties on inputs used in exported manufacture or on re-exported imported goods, and such refunds operate as ancillary receipts rather than core trading profits.