Requirement of CT-1

[Guest]

One of my client has received a order from XYZ.As per order consignee is SEZ.As per Central Excise SEZ rules the goods supplied to SEZ is treated as export and can be cleared under ARE-1 under bond.We have not executed any UT/Bond with excise authorities.We have requested our customer XYZ to execute a bond with their Excise authorities and provide us CT-1. Pls clarify that for this transaction CT-1 is required or not.

[Surender Gupta]

In case of mercant export, one can procure material from manufacturer on CT-1. I think the same principal should apply to material supplied to SEZ units.

AI Summary

CT-1 usage for supplies to SEZ units may mirror merchant export practice, enabling procurement on CT-1 under bond. Supplies to SEZ units are treated as exports and can be cleared under ARE-1 under bond; by analogy with merchant export practice, manufacturers may permit procurement on CT-1 for goods destined to SEZs, subject to the usual bond-based excise compliance.