Issue of pre-authenticated CT-3 to EOUs in textile and chemical sector –CBEC relaxes
EOUs procuring duty free inputs get them under a CT-3 Certificate. The pre-authenticated certificates are issued by the Range Superintendents. By circular No. 84/2001- Cus dated 21.12.2001, the CBEC directed that the Range Officers can issue these pre-authenticated booklets, except in case of textile and Chemical sectors, for which the certificates would be issued by the Assistant Commissioner/Deputy Commissioner.
By circular No. 66/2002-Cus dated 08.10.2002, the Board stipulated that, “The Assistant Commissioner/Deputy Commissioner of Customs/Central Excise may examine all cases of request from EOUs/EPZ/SEZ units on merits and delegate the powers of issuing procurement certificate and CT-3 to the Range Officers.”
Representations have been received that the existing procedure is causing difficulties to these two sectors. After examination, the Board has decided to extend the facility of issuing pre-authenticated CT-3 form booklets to EOUs in textile and chemical sector as well subject to certain additional safeguards as follows:-
(i) the unit has achieved Net Foreign Exchange/ export obligation wherever applicable;
(ii) the unit has not been issued a show cause notice or a demand confirmed, during the preceding 3 years, on grounds other than procedural violations, invoking penal provision and/or on account of fraud or collusion or any wilful mis-statement or suppression of facts or contravention of any of the provisions of the Customs Act, the Central Excise Act, the Finance Act, 1994 covering Service Tax, the Foreign Trade (Development & Regulation) Act, 1992, the Foreign Exchange Management Act, 1999 or any allied Acts or the rules made thereunder.
Why the special treatment to these two sectors? Huge evasion and misuse! Why the relaxation? The lobbies are apparently powerful!
CBEC Circular No. 8/2008-Cus., Dated: June 2, 2008