Clearance of intermediate goods by an Advance authorization holder to a manufacturer holding another Advance authorization
As per Notification No. 44/2001-Central Excise ( N.T ), DATED : June 26, 2001, intermediate goods can be removed from the place of manufacture or warehouse without payment of duty for the purpose of use in the manufacture or processing of all articles ["resultant articles"] by a manufacturer who is an holder of a Duty Exemption Entitlement Certificate and an Advance Licence under the Duty Exemption Scheme ‘the ultimate exporter" and their exportation out of India.
Now this concession is available for the supplies made by an Advance authorization holder to a manufacturer holding another Advance authorization, if such manufacturer, in turn, supplies the resultant products to an ultimate exporter in terms of para 8.3(c) of the Foreign Trade Policy, and the procedure, safeguards and conditions as prescribed in the notification shall apply mutatis-mutandis.
Notification NO. , Dated: September 25, 2009