CT-1 Purchase & Export

[Asked by Guest]

Dear All

Pls clear me this issue.

If X is manf. and exporter and A is Expoter Customer. X purchase the material from Y against  H form (Without Sales Tax). X is registered with Excise but Y is not registered in excise. X many purchase received against  CT-1 for save the Excise Duty and sale to A (Export Customer).

Can y also purchase the Goods against  CT-1 behalf of X and save the excise duty and sale to X for Export Customer.

[YAGAY and SUN]

Please refer para 2 of the Notification No. 42/2001-CE (NT) in this regard.  The procedure pertaining to procurement of goods without payment of Excise Duty for the purpose of Export has been mentioned in detail.

 

AI Summary

Procurement without excise duty: export purchases require following the notification procedure; third-party CT-1 use raises compliance questions.
Whether procurement without payment of excise duty for export using CT-1 is permissible where the supplier is not excise-registered and whether a third party may purchase on behalf of an excise-registered exporter depends on the procedural framework set out in para 2 of the relevant notification, which prescribes the mechanism, formalities and documentation for procurement without payment of excise duty for export purposes.