OPEN AND TIME BOUND CT-1

[RAM SHARMA]

DEAR EXPERTS,

WE ARE MANUFACTURER AND WANT TO SALE  CT-1. WE HAVE NOT FIXED QUANTY ORDER.CAN WE ISSUE CT-1 WITH PROJECTION BASE QUANTITY OR BLANK QUANTITY FROM THE EXCISE DEPARTMENT. WHAT IS THE LEGAL OBLIGATION TO CANCEL THE BALANCE QUANTITY. PL ADVICE.

THANKS

 

[YAGAY andSUN]

If, less quantity is exported, then, for unutilized quantiy the Merchant Exporter has obtain a certificate from the Central Excise Department to square it off and in the case of excess quantity is exported against the quantity mentioned in the CT-1, then, Central Excise Duty will be paid by Merchant Exporter.

[RAM SHARMA]

Sir,

What is the maximum time limit for use CT-1 quantity.

thanks 

[YAGAY andSUN]

Within Six Months.

[Vijay kumar]

The validity of CT-1 certificate is one year (as per the format contained in CBEC website), but often officers are issuing the CT-1 are specifying lesser time limit. Where less quantity is exported within the validity of the CT-1, the merchant exporter has to obtain UNUTILIZED CERTIFICATE from the Range officer of the manufacturer and submit the same to his bond accepting authority to account for the entire duty amount involved.

AI Summary

CT-1 certificate validity and unutilised quantity rules require an excise unutilised certificate or duty payment for excess exports. CT-1 certificates may be issued on projected quantities, but any excess exports over the CT-1 quantity attract central excise duty payable by the merchant exporter. For unutilised quantities, the merchant exporter must obtain an Unutilised Certificate from the Central Excise/Range officer and submit it to the bond-accepting authority to account for the duty. The CBEC format indicates one-year validity for CT-1, though officers sometimes specify shorter periods.