CT-1 requirement for buying from excise exempted unit, Central Excise

[krut dhroov]

Dear All,

If i want to buy material for exports from a unit which is registered with central excise but exempted from central excise under SSI registration for a small period of the financial year till it reaches the stipulated exemption turnover limit of ₹ 1.5 Cr, Do i have to give a ARE-1 & CT-1? As there is no excise benefit which the seller can pass on, I doubt that there is a need to provide them with a CT-1. Further for the benefit of the unit we provide Form H to them so they can get a deduction of our invoice amounts from their total turnover to enjoy the exemption for a prolonged period. Isn't a Form H enough to get that deduction?

Posts / Replies

[KASTURI SETHI]

SSI units which are exempted from Central Excise duty on account of their turnover below prescribed limit, do not have to follow ARE-I and bond procedure. In this context Board's circular no.648/39/2002-CX dated 25.7.2002 is appended below:-

SSI Units export - Proof of export - Clarifications

Circular No. 648/39/2002-CX., dated 25-7-2002

[Ganeshan Kalyani]

Sir very relevant and apt reference is given by Sri Kasturi Sir. It enriched my knowledge. The querist got his reply. Thanks.