ADVANCE LICENCE

[SNEHAL SHAH]

R/sir,

We are the Engineering Manufacturing Unit & we have one big order  for supply the mateiral to EPCG licence holder ( Deemed Export ) at mumbai . We have procure the material against Advance licence for this deemed export . Now due to not enough capacity of production and manpower , we have send this material to job worker ( EOU UNIT ) for finished goods .

Now after completion of this finished goods we are send this material directly at Mumbai ( Cleard from Job worker premises - Under rule 4 (6) of Cenvat Credit Rule, 2004.) . For this (rule 4(6) we have already take permission from Deputy Commissioner of central Excise and Customs .

We have some confusion is that ---

1) Is it any problem for directly material dispatch from job worker premises ( due to We are Advance license holder and all material send at job worker ( EOU UNIT ) , which was procured under advance license ) .

2) Is it any litigation face at the time of EO fulfillment .

We can not in a condition for this material return back at our factory premises after finished good prepared , so we have only one option that this material send directly at job worker premises .

Please guide me sir .

With Regards,

SNEHAL SHAH

[SNEHAL SHAH]

RESPECTED ALL PLEASE REPLY FOR ABOVE QUARY .

AWAITING REPLY .

With Regards,

SNEHAL SHAH

[YAGAY andSUN]

Kindly check the para, 4.1.5,  4.1.8 and 4.2.7 of FTP.

Also refer Tetra Pack v CC (2005 (4) TMI 182 - CESTAT, MUMBAI)= 2005 (190) ELT 257 (CESTAT).

AI Summary

Advance licence compliance: direct dispatch from job worker premises permitted if permission and FTP conditions are met. Advance licence inputs sent to an EOU job worker were cleared and dispatched directly from the job worker's premises with prior permission under the rule allowing clearance from job worker premises; the principal compliance concern is whether direct dispatch affects treatment under the Advance Licence and the discharge of the export obligation, and the recommended safeguards are documented permission, adherence to FTP conditions, and maintenance of records linking procured inputs to the deemed export supply.