Sale of a product to 100% eou

[GANESH B]

We are having manufacturing unit getting excise credit. can we sell the same product to a 100% eou unit by taking CT3 form

[Surender Gupta]

Yes, you can avail cenvat credit on inputs used in Finished Goods sold to EOU against CT-3 form without payment of duty. For this purpose, you are not required to proportionate the credit. You can avail full credit.

[Guest]

agreed with the views of surender gupta

[RadheyShyam Mangal]

yes u can sell your goods without payment of duty to the eou and u need not to reverse the credit taken on inputs used in the manufacture of said goods.

[RadheyShyam Mangal]

u can sell the raw material as such to the eou against CT-3.

AI Summary

Companies Can Sell to EOUs Duty-Free Using CT-3 Form, Keep Full Excise Credit, Say Experts VISAKHA INDUSTRIAL GASES PRIVATE LIMITED inquired about selling products to a 100% Export Oriented Unit (EOU) using a CT-3 form while availing excise credit. Responses confirmed that they can sell finished goods to an EOU without paying duty and without needing to proportionate or reverse the excise credit on inputs. It was also mentioned that raw materials can be sold directly to the EOU against the CT-3 form. Multiple contributors agreed on this interpretation, affirming the ability to utilize full cenvat credit in such transactions.