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Raw material input for sale against ct-3

Antony Raj (Accountant) (81 Points)

28 July 2015

Dear Experts,

We are the manufacturers of non-ferrous castings. Only one customer of ours is 100% EOU, and he is issuing CT-3 for not charging any excise duty. One of our consultant is saying you can not take Input on Raw Material purchases for sale against CT-3, because you are not charging output. We have lot of raw materials like copper, zinc, aluminum, tin, lead etc to create a non-ferrous castings and in one melt we will be having the material of 100% EOU unit's and other customer’s. If the consultant is correct on his part how to bifurcate the raw material input. If any notification is there, kindly let me know.

Kindly clarify the same.

Thanks in Advance

Regards

ANTONY RAJ

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2 Replies

Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 30 July 2015

You can supply the excisable goods against CT-3 without payment of excise duty to 100% EOU and SEZ. You can also take the cenvat credit of input and input services used in the manufacturing of final product supply againt CT-3.

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satya (Executive Excise) (1839 Points)
Replied 06 August 2015

I also agree with Arun sir.

reading in Anthony: You said condition apply when you remove goods under rule 6 only. at that time you have to maintain dutiable n non dutiable records for Inputs or pay half of the duty.