Removal of inputs

[Guest]

EOU, permission to subcontract part of the production process in DTA granted by the AC/DC ALONG WITH SPECIFIC PERMISSION TO REMOVE INPUTS(PROCURED AGAINST CT-3) DIRECTLY FROM SUPPLIER TO JOB WORK PREMISES. Can we remove Inputs (which are being procured against CT-3) directly from Supplier to Job work, whereas as per rule material first be brought from manufacutrer/supplier premises to EOU Bonded premises. Liability of EOU ?

[Surender Gupta]

For this purpose, you need to take specific permission from the AC/ DC. However, before granting any permission, he may ensure that you should not assign the entire (or substantial) manufacturing operations to the units in the DTA on job work basis.

AI Summary

Permission to remove inputs: specific authority required, with limits to prevent substantial outsourcing of manufacturing to job workers. Whether an EOU may have inputs procured against CT 3 removed directly from the supplier to DTA job work premises contrary to the rule requiring materials first be brought into EOU bonded premises; administrative guidance requires specific permission from the Assistant/Deputy Commissioner, who may condition or refuse permission to ensure the EOU does not assign the entire or substantial part of its manufacturing operations to DTA job workers.