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

AI Summary

Engineering Unit Seeks Clarification on Direct Dispatch Under Cenvat Credit Rule 4(6) for Export Obligation Fulfillment An engineering manufacturing unit is fulfilling a large order for an EPCG license holder in Mumbai and has procured materials under an Advance License for deemed export. Due to limited production capacity, the unit outsourced the finishing of goods to an EOU unit. The materials are dispatched directly from the job worker's premises to Mumbai under Cenvat Credit Rule 4(6), with permission from the Deputy Commissioner of Central Excise and Customs. The unit seeks clarification on potential issues with direct dispatch from the job worker and any litigation risks concerning Export Obligation fulfillment. Guidance was requested, and a reference to specific FTP paragraphs and a case was provided.