TaxTMI 
TaxTMI 
Supply of material under Invalidation letter ( Advance Authorisation Scheme)
X X X X Extracts X X X X
X X X X Extracts X X X X
....upply of material under Invalidation letter ( Advance Authorisation Scheme)<br> Query (Issue) Started By: - Atul Deshmukh Dated:- 21-5-2016 Last Reply Date:- 23-5-2016 Customs - Exim - SEZ<br>Got 1 Reply<br>Customs<br>Dear Experts, Please advise in the following situation : Company A, who is a holder of Advance Authorisation (AA) wish to invalidate their AA for sourcing their raw material domest....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ically from Company B. Company B becomes Intermediate supplier. They too are now entitled for their AA based on Invalidation letter being given by Company A. However, Company A wants the material to be delivered at some different company, say Company C (having all together different IEC and legal entity). More importantly, the invalidation letter will not have name and address of this company C ....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., where the material would be supplied by Company B. Company C is ready to give excise attested Statement of Invoices and Invoices to Company B so that they can close their Advance Authorisation. Can you please guide on the below :- 1. Firstly, in such type of transaction, will Company B able to close their AA based on excise attested documents given by Company C ? Because Company C is not at a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ll in the picture as far as Invalidation letter is concerned. 2. Is it not mandatory for Company B to supply the material only to the company whose name and address is mentioned in the Invalidation letter. 3. Tomorrow DGFT will ask Company B to establish the nexus between Company A, B and C. In such situation, how Company B will handle the transaction ? Will they be able to close their AA ? 4. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....According to me, Para 4.30 of HBP does not allow such transaction. Am I correct ? Please guide whether Company B should accept such Invalidation letter or not. Thanks in advance. Atul Deshmukh Reply By MUKUND THAKKAR: The Reply: For closing of advance authorisation, such type of internally documents are not allow by DGFT, Invalidation issued by Company A to you, On the basis of you are entit....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le for getting the advance authorisation, now A is asking to delivered goods to company C. this is only possible when company A initallly mention the name of C as supporting manufacurter. supply under the invalidation letter TED is applicable and your buyer can get it refund from DGFT. This is my view.<br> Discussion Forum - Knowledge Sharing ....