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C.t-3 certificate

Rajaram M (Asst. Manager Materials) (180 Points)

15 September 2011

CT-3 certificate need to submitted to the Range office and get the acknowledgment/permission before prepare Invoice against the same?

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valji (Accounts manager-MBA) (2150 Points)
Replied 15 September 2011

normally goods which are sale for the purpose of export is purchased under CT-3 ahainst contract ct -3 are colleted before purchase of goods by the purchaser

when goods are sold under Ct-3 you have to collect from the party exim copy of INvoice with ARE-3 which are collted against suppply of Goods invoice No mentioned in ARE 3 which is sumitted in EXcise department by the seller of Goodds

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DAYANANDA K N (ACCOUNTS EXCECUTIVE) (575 Points)
Replied 15 September 2011

Given below extract from Circular No. 851/9/2007-CX dated 3rd May 2007 which speaks about the procedure to be followed by assesee while clearing the goods.

The user industry(buyer) will forward one copy of CT-3 certificate to the factory or warehouse of the consignor from where they intend to procure goods without payment of duty and retain one copy for their record. On the basis of this certificate, the consignor shall avail benefit of the notification.

The consignor shall prepare an application for removal of goods from his factory or warehouse to user industry in quadruplicate in the form (ARE-3).

The consignor shall also prepare an invoice in the manner specified in Rule 11 of the Central Excise Rules, 2002 in respect of the goods intended to be removed from his factory or warehouse.

The consignor shall send the original, duplicate and triplicate copies of application (ARE-3) and duplicate copy of invoice along with the goods to the user industry.
The consignor shall send quadruplicate copy of the application to the Superintendent-in-charge of his factory or warehouse within twenty-four hours of removal of the consignment.

The consignor should receive the duplicate copy of application (ARE-3) with certificate of warehousing, duly endorsed by the user industry and counter signed by the Superintendent-in-charge of the user industry, within ninety days of the removal of the goods. If the warehousing certificate is not received within ninety days of the removal, the consignor shall intimate the Superintendent-in-charge of his factory or warehouse.

If the Superintendent-in-charge of the consignor of the goods does not receive the original copy application (ARE-3) with certificate of warehousing, duly endorsed by the user industry and countersigned by the Superintendent-in-charge of the user industry, within ninety days of the removal of the goods, weekly reminders must be issued by him to the Superintendent-in-charge of the user industry. If despite such reminders, the original warehousing certificate is not received within a further period of sixty days of the expiry of the ninety days period, the Superintendent-in-charge of the consignor shall inform his Assistant/Deputy Commissioner who shall either secure a satisfactory proof of the goods having been duly received by the user industry or ensure that the duty of excise due on the goods not received at destination is recovered from the consignor in terms of Rule 20 (4) of the Central Excise Rules, 2002.

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